The American Bankers Association’s Economic Advisory Committee brings together 15 senior economists from some of the largest banks in North America.
The committee chairman indicates that the Fed is close to achieving its dual mission, but warns that the weakness of the labor market needs to be monitored
- The Fed expects to cut interest rates by an additional 150 basis points through the end of 2025
- It expects strong growth of 2% in the second half of 2024 and 2025
- The risk of recession is stable at 30% by 2025
- Unemployment is expected to peak at 4.4% in the first half of 2025
- Personal consumption expenditures inflation is expected to reach the Fed’s 2% target by the second quarter of 2025.
- Credit availability is expected to expand and quality to remain stable
- Consumer delinquency rates at banks are expected to reach 2.7% in 2025
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previously:
- Federal Reserve Chairman Powell disputed expectations of continued deep interest rate cuts
This article was written by Eamonn Sheridan at www.forexlive.com.