2024-04-13 19:00:15
Following the release of strong US labor market data, more analysts believe the Federal Reserve will cut its key interest rate just once or twice in 2024.
As Day.Az reports with reference to Interfax, The Wall Street Journal writes about this.
Some economists expect borrowing costs to remain the same throughout 2024. At the end of 2023, investors were expecting six or even seven Fed rate cuts.
“The last bears are giving up,” said RSM US senior economist Joe Brusuelas. “We’re seeing robust economic growth and investors are starting to factor that into their risk assessments.”
As it became known on April 5, the number of jobs in the US economy increased by 303 thousand in March, the fastest pace in the last 10 months. Analysts on average predicted an increase of 200 thousand, according to Trading Economics. At the same time, unemployment in the United States dropped to 3.8% in March compared to 3.9% a month earlier, although experts did not expect a change.
March inflation data will be released on Wednesday. Analysts estimate that US consumer price growth slowed to 3.2% last month from 3.4% in February.
The Fed’s forecast calls for three rate cuts this year. Meanwhile, several representatives of the Federal Open Market Committee (FOMC) last week expressed a desire to wait for new data in order to better understand the situation with inflation and the prospects for the economy as a whole.
“The Fed could still cut rates in June, portraying it as a mild adjustment rather than a sharp change in monetary policy,” said Brian Jacobsen, senior economist at Annex Wealth Management. “But there is no reason for them to rush.”
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