The Fed will leave interest rates unchanged at its upcoming policy meeting. Chair Jerome Powell may acknowledge in his post-meeting press conference that downside risks to the outlook are fading. But the overall tone is still likely to be dovish, not least because officials are increasingly concerned about the recent drop back in core inflation and inflation expectations. We expect a slowdown in economic growth to below its 2% potential pace will force the Fed to begin cutting rates before the end of the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services