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The danger bells are ringing for the Fed: "There is a concerning situation"
The news agency Reuters asked 105 economists questions about US interest rate cuts and the independence of the Fed. While 50 of the participants answered the question of whether the Fed's independence is at risk, 36 of them said that the independence is indeed at risk. Among these 36 people, 10 indicated that the situation is 'very concerning.' Meanwhile, 14 economists expressed that they are not worried about the independence of the Fed.
100% expectation on keeping it fixed...
All 105 economists predict that the Fed will keep interest rates unchanged at the FOMC meeting on July 29-30, 2025. A majority of 53% of the (56 economists) also expect a rate cut in September 2025. Reuters also stated that there is no consensus among economists for the period after September.
About 65% of economists expect 1 or 2 interest rate rebates in 2025. Approximately 20% believe there will be no interest rate rebates this year. When taking the average of the survey, the expectation for the number of rebates in 2026 is 2.
"Rates may increase inflation"
Economists stated that the mutual tariffs announced by Trump in April could increase inflation and slow down the economy.
Published: July 23, 2025 16:32Last Updated: July 23, 2025 16:35