⑥ After raising interest rates 11 times since early 2022, the Fed's favored measure of inflation has fallen sharply from a peak of 7.0%. But it is not expected to drop to the 2% target until at least 2025, the survey showed.
⑦Increased confidence that the economy may avoid a severe recession has prompted growing expectations that interest rates will remain high for a longer period of time, leading to turmoil in the bond market in recent days. The benchmark 10-year yield on U.S. Treasuries is now just a few basis points below the October cycle high.
⑧23 respondents indicated that there will be one more interest rate hike this year, and two said that there will be two interest rate hikes, with the interest rate range reaching 5.75-6.00%. Of the 95 economists who provided forecasts to mid-2024, most said at least one rate cut would be by then, but were inconclusive on the timing of the first.
⑨ Among them, a slight majority of 48 people said that the Fed will not cut interest rates by the end of March, and 45 people (47%) said that the Fed will cut interest rates for the first time in the first quarter. The other two forecast a rate cut in the fourth quarter of this year. Another 33 respondents, or about 35 percent, predicted the Fed would cut rates for the first time in the second quarter, and 79 of 95 respondents, or 83 percent, expected at least one rate cut by mid-2024