Arabictrader.com – The credit rating agency Fitch expected the US Federal Reserve to continue its interest rate reduction cycle, bringing the main rate in the United States to 4.5% by the end of this year and to 3.5 % by the end of the next year. . The interest rate will reach a neutral level of 3% in June 2026.
In this regard, the global group suggested that the US Federal Reserve could reduce interest rates by 25 basis points twice at the monetary policy meetings in November and December.
Fitch said it was difficult to justify the US Federal Reserve’s decision to cut interest rates by 50 basis points at its September meeting in light of the economic data available at the time, given the high rate of inflation in the consumer price index. services department.
However, Fitch explained that the US Federal Reserve’s decision was partly based on policymakers’ concerns about an unexpected rise in the unemployment rate.
Regarding the state of the American labor market; Fitch reports that the recent increase in the unemployment rate reflects the increase in the workforce over the past 12-18 months; Noting that wages are growing and spending remains flexible, the group also predicted that the labor market would slow down significantly.
2024-09-23 19:12:00
#Fitch #Agency #clarifies #expectations #interest #rate #Arab #Trader
