Reuters Poll Shows Most Economists Expect Federal Reserve Rate Cut Next Quarter

Bloomberg’s survey shows economists now expect the Federal Reserve’s next rate cut in June rather than March, while still projecting two 25-basis-point reductions by the end of the year.

Summary

A Bloomberg survey of 46 economists conducted from March 6 to 11 found that expectations for the Federal Reserve’s next interest-rate cut have shifted from March to June. Economists still expect two 25-basis-point cuts by year-end, and the median forecast puts the federal funds rate at 3% to 3.25% at the end of the year. This marks a notable timing update from earlier expectations of a next-quarter cut.

Terms & Concepts
  • Federal funds rate: The benchmark U.S. interest rate that influences borrowing costs, liquidity, and risk appetite across global financial markets, including crypto.
  • Basis point: A unit equal to one-hundredth of a percentage point, commonly used to describe changes in interest rates and bond yields.