Fed still on track for a June rate cut

Despite upward revisions to the median projections for both GDP growth and core PCE inflation, the Fed’s median forecast for interest rates still shows a cumulative 75bp of policy loosening this year. In contrast, we continue to believe that below-potential GDP growth will help to drive core inflation much closer to the 2% target by year-end, persuading the Fed to cut rates by 100bp, beginning in June.

We’ll be discussing the outlook for Fed, ECB and Bank of England policy in a 20-minute online briefing at 11am EDT on Thursday 21^st March. (Register here .)