Economist Predicts Potential of 5 Rate Cuts by Fed in 2025 as Growth Slows Down

Chief Economist Predicts 5 Rate Cuts by Fed in 2025 as US Economy Expected to Slow

Jerome Powell has emphasized the Fed’s commitment to supporting the economy in a recent statement. S&P Global Ratings’ global chief economist predicted that the Fed could potentially lower rates up to five times in 2025 based on the expectation of a slowdown in the US economy.

Paul Gruenwald, the global chief economist at S&P Global Ratings, anticipates that the Fed will issue three rate cuts in 2024 followed by up to five rate cuts in 2025. The forecast implies that the Fed could lower rates by a total of 2 percentage points as inflation cools down. Gruenwald believes that a slowdown in the economy is inevitable and expects growth to slow down in the second half of the year.

Despite a surge in productivity and investment this year, Gruenwald believes that growth will eventually level off. While there are risks that could lead to more aggressive rate cuts, such as a significant increase in unemployment, Gruenwald still expects the Fed to lower rates gradually. This outlook contrasts with predictions from other Wall Street analysts who are concerned about high prices persisting for a longer period. Increases in consumer prices and potential inflation risks have sparked debate among economists on how the Fed should proceed.

Jerome Powell has emphasized the Fed’s commitment to supporting the economy in a recent statement. S&P Global Ratings’ global chief economist predicted that the Fed could potentially lower rates up to five times in 2025 based on the expectation of a slowdown in the US economy. Paul Gruenwald, the global chief economist at S&P Global…

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