The Fed’s less dovish language, against a backdrop of fading downside risks, is why we think the Fed is now done cutting interest rates. We anticipate rates will remain at their current level of 1.50%-1.75% at least through the end of 2021. The Fed will not want to repeat the mistake of hiking rates prematurely, particularly not in a highly-charged election year, even if inflation returns to target more quickly than expected.
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