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Experts expect two interest rate cuts from the Fed in 2024: Reuters survey

While the entire financial world is wondering whether the US Federal Reserve (Fed) will start reducing interest rates in September, the famous news agency Reuters received the opinions of market experts. According to the survey, the general opinion is that a reduction of 25 basis points will be made in 2024, mostly in September and December, for a total of 50 basis points.

The Fed, which started reducing interest rates in March 2022 due to a serious increase in inflation, did not start reducing interest rates despite more than 2 years and great demands from the market. Experts, who predicted 6 to 8 interest rate cuts at the beginning of 2024, sometimes reduced this number to 2 and sometimes to 0, as inflation did not decrease.

According to Reuters' latest survey of economists, the expected number of interest rate cuts for the second half of 2024 stands out as 2. The decrease in pressure on prices, the weakening in the labor market and the decline in inflation to 3% gave FOMC members "more confidence" for interest rate cuts. . In fact, expectations were for an interest rate cut to come in May, November or December at the earliest, but the rapid decline in the CPI gave the green light for September.

2 interest rate cuts of 25 basis points each…

The majority of economists surveyed by Reuters stated that they expected two interest rate cuts this year. All 100 economists who participated in the survey stated that they did not expect a reduction (or increase) from the interest rate decision on July 31.

82 survey participants expect a 25 basis point interest rate cut in September. 15 people stated that they expected the earliest interest rate cut to come in November or December. A very small group of 3 people do not expect the Fed to cut interest rates this year.

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