TechFlow, April 17 — According to Jinshi Data, international credit rating agency Fitch stated that the unexpected weakness in the US dollar has created more room for global central banks to ease policy. Fitch now expects further rate cuts by the European Central Bank and emerging markets.
With global economic growth slowing, falling commodity prices—including oil—will also accelerate monetary easing outside the United States, contrasting with the Federal Reserve. Fitch still expects the Fed to wait until the fourth quarter before cutting interest rates. The report said that despite worsening US economic growth prospects, inflation dynamics continue to constrain the Fed’s ability to loosen policy.
Fitch expects tariff escalations to push US inflation up to 4.3% by year-end, revised from a previous forecast of 3.6%.
