Economists See Faster Labor Cooling, Steeper Fed Cuts in Survey

  • Unemployment estimate rises to highest level since November
  • Poll suggests Fed’s behind the curve in cutting interest rates

Attendees at a career fair at a community college in Bolivia, North Carolina.

Photographer: Allison Joyce/Bloomberg
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A labor market softening more so than previously thought should spur faster and steeper interest-rate cuts by the Federal Reserve, according to the latest Bloomberg monthly survey of economists.

The unemployment rate is expected to peak at 4.4% by the end of this year and stay at that level through mid-2025, while economists in the August survey also see more moderate payrolls growth than they did a month ago.