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Golden Finance reported that Barclays economists anticipate, based on this week's inflation data, that the Federal Reserve will start cutting interest rates earlier than previously thought, with a projected start time in March instead of their earlier estimate of June. "Given the recent progress on inflation, we believe the FOMC will feel comfortable cutting rates without needing to see a substantial weakening of the economy or labor market," wrote Marc Giannoni and Jonathan Millar in a research note on Friday. As before, they expect the Fed to cut rates by 25 basis points at every other meeting. The forecast is contingent on the "economy slowing gradually" and the unemployment rate slightly above the Fed's long-term estimate (3.5%-4.3% as of December). |
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