Fitch expects Fed interest rate cuts in September and December
International credit rating agency Fitch Ratings has announced that it expects the US Federal Reserve (Fed) to implement two interest rate cuts, one in September and one in December.
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In a statement from Fitch, it was noted that a "soft landing" for the US economy is likely, supported by moderating inflation and low unemployment.
The statement indicated that the economic growth rate is expected to decline from 2.5 percent in 2023 to 2.1 percent this year.
Fitch's statement emphasized that two interest rate cuts are projected for September and December.
Pointing out that the credit environment in the country is expected to be slightly weaker in the second half of this year, the statement included the following assessment: "Growth in consumer spending is holding up well and will likely moderate as nominal wage and employment growth slows. Housing demand remains strong but has softened recently alongside high home prices, though affordability could improve with falling interest rates."