Wall Street Lowers Rate Projections, Widening Gap With Fed View
- Survey of economists shows 2.5% median terminal forecast
- Policy makers anticipate a 3.25% rate when hiking cycle ends
No June Rate Hike Keeps Fed Off Table All Rear: Pursche
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Economists extended their deviation from the Federal Reserve in forecasting the path of U.S. policy tightening as they lowered predictions for how high the central bank will be able to lift interest rates.
Analysts responding to a Bloomberg survey cut their expectations for the Fed’s peak policy rate at the end of this tightening cycle, known as the terminal rate, to a median of 2.5 percent, from 2.875 percent in February and 3.375 percent in July. That compares with the Fed’s median forecast of a 3.25 percent terminal rate, which it revised in March from 3.5 percent in December and 3.75 percent in June.