A new survey of economists by Bloomberg says two Federal Reserve rate cuts are projected to come in September and December this year — but that may not come without economic pain.
Currently, the benchmark federal funds rate controlled by the central bank sits between 4.25% and 4.50%. A double cut of 25 basis points would bring the range down to 3.75% and 4%. Expectations are that the Fed will keep interest rates where they are in the Federal Open Market Committee this week after its meeting.
About 11% of the economists polled expect the Fed to slow the pace of quantitative tightening, the process of reducing the organization’s portfolio of assets, with 41% expecting that to happen in the second quarter.
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