Economists See Stubborn Inflation, Gradual Fed Rate-Cut Tempo
- Fed to cut rates 1 percentage point in 2025: Bloomberg survey
- Core PCE price index seen rising 2.3% vs 2.2% prior estimate
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Economists see the Federal Reserve taking a more measured approach to interest-rate cuts next year amid stubborn inflation and limited prospects that price pressures can cool much under President-elect Donald Trump.
The Fed’s preferred inflation gauges will run a touch faster in the coming year than expected last month, according to the latest Bloomberg monthly survey of economists. They project the so-called core personal consumption expenditures price index — which excludes the volatile food and energy categories — to advance 2.3% on average next year. That’s up from the 2.2% projection in last month’s survey.