The Federal Reserve will lower interest rates just once this year, according to a new poll of academic economists, as lingering inflation forces the US central bank to adjust its schedule to cut borrowing costs.
More than half of the 39 academics that took part in the FT-Chicago Booth poll said that the Fed would only make one quarter-point cut this year. Almost a quarter forecast no cuts at all.
The results of the survey, conducted in the final week of May, come ahead of the Fed’s meeting on Wednesday, when rate setters are expected to shift their own predictions for cuts this year from three to two, or fewer.
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