The Federal Reserve is planning to cut interest rates this year as policymakers put pressure on Trump's fallout from tariffs, according to a survey released Friday.
Voted by Bloomberg News, the economist predicted two quarter cuts, with the outlet reporting the first one being expected in September and the second being expected in December.
Fed officials are expected to hold a two-day meeting next week, keeping benchmark interest rates between 4.25% and 4.5% unchanged.
Polls show that the majority of economists believe that the current trade disruption is at a high risk of inflation and unemployment.
Approximately 70% of respondents surveyed expect to see weak growth in 2025 due to Trump's policies, with two-thirds predicting high inflation.
The vote took place between March 7th and 12th.
The Fed's latest monetary policy meeting has concerns that Trump has been exacerbated by strengthening his tariff war as Wall Street is increasingly worried about a slowdown in the economy.
On Thursday, the benchmark S&P 500 saw a few weeks of slides in recent stock accelerated and confirmed that it is With the correctionIt has now exceeded 10% from the high on February 19th. The decline wiped out more than $4 trillion in market value, with some of the best flyers on Wall Street like Nvidia and Tesla becoming Panmer.
“The stock market is looking to gain all sorts of insight into how the Fed will be comfortable enough to implement the next rate cut,” said Dominic Pappard, chief multi-asset strategist at Morning StarWealth. “I don't think the onslaught of headlines and new policies coming from the White House will soon be stopped.”
This uncertainty has caused volatility in financial markets and raised concerns about a potential economic slowdown, but inflation remains high.
“We're looking forward to seeing you get the chance to see the world's most important aspects of our efforts,” said Scott Anderson, chief American economist at BMO Capital Markets.
“Uncertainty regarding the size, duration and targets of future tariffs further complicates the monetary policy outlook,” he added.
Tariff News is likely to be at the forefront of the market next week, with analysts saying taxation could bite the profits of businesses and raise consumer prices.
In the latest Salvo, Trump threatened 200% tariffs on all European wines and other alcoholic products on Thursday. A day ago, the European Commission said it would impose counter-offenses on US goods worth $28 billion in response to US tariffs on steel and aluminum.
There are also concerns on Wall Street that uncertainty could overturn the recent trading boom, or Trump's “bump” as M&A activities begin to slow down.
However, Powell dismissed the downward warning earlier this month, saying: There's really no need to do anything.
With post wire
