Société Générale has revised its Federal Open Market Committee (FOMC) forecasts, now predicting no decline in Fed Funds before 2025:
SG cites still strong US economic data, helping to fuel inflation still above target
- “Consumer prices increased significantly in the first months of 2024 compared to the second half of 2023.”
- “The Fed probably sees this as a temporary three-month fluctuation. However, this development may have shaken its confidence, which does not appear to be able to recover in time for rate cuts this year.”
Barclays, meanwhile, revised its forecast and expects an FOMC rate cut in December 2024, compared to September previously. Barclays also expected a reduction at all other subsequent meetings, but abandoned this forecast as well.
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