The U.S. Federal Reserve is expected to keep interest rates unchanged at its next meeting, according to a Reuters poll of economists. The survey, conducted from October 13-18, found that 95 out of 102 economists predicted the Fed would hold its benchmark federal funds rate steady in the 5.25%-5.50% range.
The remaining seven economists anticipate a 25 basis point hike, bringing the rate to 5.50%-5.75%.
The Fed has raised rates aggressively over the past year and a half to combat inflation, but has paused its tightening cycle in recent meetings. Economists are divided on when the Fed will begin to cut rates, with many expecting a cut in the second half of 2024.
The poll also showed that economists have lowered their expectations for U.S. economic growth in the coming year. The median forecast for GDP growth in 2024 is now 1.2%, down from 1.5% in the previous poll.
Inflation is expected to moderate, but remain above the Fed’s 2% target for the foreseeable future. The median forecast for core PCE inflation in 2024 is 2.6%, down from 2.7% in the previous poll.
The Fed’s next meeting is scheduled for October 31-November 1.
