The Fed will leave rates unchanged next week and may well include references to being “patient” in the policy statement and post-meeting press conference, to signal more clearly that a March rate hike is off the table. With equity markets rebounding from their recent lows, economic growth solid, and core inflation close to 2%, we still think the Fed will raise rates once more, either at the April/May or June meeting. Further ahead, however, we expect a sharp slowdown in economic growth will force the Fed to cut rates by 75bp in 2020.
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