"Fed Considers Fewer Rate Cuts Amid Inflation Concerns"
According to the CNBC Fed Survey, forecasters are increasingly confident that the U.S. economy will avoid a recession and achieve a soft landing, leading to the possibility of fewer rate cuts by the Federal Reserve in 2024. The survey indicates a 52% probability of a soft landing and a 32% probability of a recession in the next 12 months, the lowest since February 2022. Respondents still see three rate cuts this year on average, bringing the funds rate down to 4.6%, and are more optimistic about rate cuts next year. The survey also forecasts a modest economic slowdown, with GDP predicted to grow 1.6% this year and inflation expected to fall to 2.7%. Despite the positive outlook, 58% of respondents believe equities may be "somewhat overpriced," and the Fed is not expected to cut rates quickly.
- CNBC survey: Fed could cut rates fewer times than expected CNBC
- The Fed Is Playing a Waiting Game on Rate Cuts. The Rules Are Starting to Change. The Wall Street Journal
- Fed Meets Amid Worries That Inflation Progress Might Stall The New York Times
- Here’s why high interest rates haven’t caused a US recession CNN
- Fed weights interest rate cuts as CPI rose in February, January The Washington Post
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