Economists Survey: Fed Rate Cut Next Week Seen as Consensus, Divergence on Path Next Year
By: theblockbeats.news|2025/10/22 09:15:51
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BlockBeats News, October 22nd, a Reuters survey of economists showed that the Fed will cut interest rates by 25 basis points next week and cut rates again in December; however, there is still a significant difference of opinion among the surveyed economists on the level of rates at the end of next year.
Among the 117 economists surveyed, all but 2 of the 115 predicted that the Fed would cut interest rates by 25 basis points again on October 29, bringing the rate to the 3.75%-4.00% range. Another 2 expect a 25 basis point cut in October and a 50 basis point cut in December. The proportion of economists supporting another rate cut in December has dropped to 71%. The survey was conducted from October 15th to 21st.
Regarding the level of rates at the end of next year, economists gave seven different forecasts, ranging from 2.25% - 2.50% to 3.75% - 4.00%. The increased uncertainty is partly due to speculation in the market about who will succeed Chairman Powell after his term ends in May next year.
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