It was stated that the US Federal Reserve System (FRS) lowered its GDP and inflation forecasts in the country for 2024. Press release regulator
It was noted that the US GDP growth forecast for 2024 was lowered from the previous 2.1% to 2%, and the inflation forecast was lowered from the previous 2.6% to 2.3%.
The Fed also raised its 2024 unemployment forecast to 4.4% from the previous 4%.
September 18, Oksana Kholodenko, Head of Analytics and Promotion Department at BCS World of Investments statedHe said the US Federal Reserve could cut interest rates by 0.5 points at a time, instead of the standard 0.25 point step.
Kholodenko noted that the world’s leading regulators – the Fed and the European Central Bank (ECB) – often act in synchrony.
He reminded that the ECB has already cut interest rates twice, and now the decision is up to the Federal Reserve. Kholodenko noted that the Fed has every reason to do so, that inflation is slowing down and the labor market is very weak.
He also said the key rate could be cut by 1-1.25 percentage points by the end of the year, but in reality it could be shorter due to the reaction of financial assets to the Fed’s steps and regulatory rhetoric. The analyst added that “grey swans”, including geopolitical risks, should not be ignored.
Previously ECB in the name European banks are more likely to leave Russia.