The Fed has suspended interest rate cuts, which began at 50 basis points last September since January 2025.
The Fed, which changed interest rates until 2025, citing tariff tensions promoted by US President Donald Trump, is expected to cut interest rates again in September.
At this point, it’s almost certain that it will cut interest rates as there are only a few days left before the Fed announces its September rate decision.
At this point, the price of 25 basis points cut by the Fed is 92.7%, while the price of 50 basis points cut is 7.3%.
In hopes of a rise in the Fed, Reuters conducted the survey with the participation of 107 economists.
According to a Reuters poll, 105 of the 107 economists predicted that the Fed would cut 25 basis points on September 17, as labor market weakness outweighed inflation risks.
Only two economists said they hope for a 50 basis point cut.
These economists also said they are hoping for another interest rate cut in the next quarter, and estimate that the total number of cuts this year will reach three.
“Currently, the Fed has four months of evidence of a slowdown in labor demand, and the slowdown appears to be more sustainable… in short, it ignores where inflation is today and facilitates policies to support the labour market.
The study found that many economists revised their forecasts to include greater interest rate cuts than previously thought as employment growth stagnated in August and a sharp decline in employment data for the 12 months from March to March.
*This is not investment advice.
