• Home
  • Analitica
  • Notizie dai mercati
  • BofA economists expect further aggressive easing of the Fed's monetary policy in the 4th quarter
Notizie economiche
19.09.2024

BofA economists expect further aggressive easing of the Fed's monetary policy in the 4th quarter

BofA Global Research economists said that the Fed, which began its monetary easing cycle yesterday, is likely to cut interest rates by another 0.75% by the end of this year. Earlier, they predicted a 0.5% rate cut - 0.25% each in November and December.

Yesterday, the Fed cut the interest rate by 0.5%, saying that such a move demonstrates the commitment of policymakers to keep unemployment low.

As for next year, BofA Global Research economists predict an easing of the Fed's monetary policy by another 1.25%, as a result of which the rate will be in the range of 2.75%-3.00%.

"We believe that the US Central Bank will be forced to make more serious rate cuts. After yesterday's decision, we are skeptical that the Fed will want to present a hawkish surprise," the economists said.

Meanwhile, Goldman Sachs economists still expect a 0.5% rate cut by the end of the year. However, they added that they now forecast a consecutive 0.25% from November 2024 through June 2025.

Guarda anche