• Sat. May 18th, 2024

Global Economist Predicts Slower US Economy with Potential Rate Cuts up to Five Times by 2025

BySamantha Jones

Mar 27, 2024
S&P Economist Predicts 5 Interest Rate Cuts in 2025 Due to Slowing US Economy

In an interview with Yahoo Finance, S&P Global Ratings’ global chief economist, Paul Gruenwald, predicted that the US economy will slow down in the coming years and that the Federal Reserve could potentially lower interest rates up to five times in 2025. According to Gruenwald, this would mean a total decrease of 2 percentage points in interest rates.

Despite strong productivity and investment this year, Gruenwald believes that the US economy will inevitably slow down. He projects that as growth starts to decline in the second half of the year, the Fed will gradually lower interest rates to maintain a “slower-for-longer” approach. This forecast indicates a quicker pace of monetary easing compared to other economic predictions.

Gruenwald’s prediction aligns with the expectation of Fed continuing to cut rates gradually, despite some Wall Street analysts warning of prolonged high interest rates due to stubbornly high prices. The unexpected acceleration of consumer prices in February and the potential for inflation to rise further this year present challenges, but could also provide opportunities for the Fed to intervene. If the labor market weakens significantly and unemployment rises, the Fed may need to cut rates more aggressively than currently anticipated.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

Leave a Reply