Barclays economists predict rate cut will be brought forward to March

Barclays economists expect the Fed to start cutting interest rates early, judging from this week's inflation data. The forecast start time will be brought forward to March from June as previously thought. "Given recent progress on inflation we believe the FOMC will feel comfortable cutting rates without seeing a significant weakening in the economy or the labor market," Marc Giannoni and Jonathan Millar wrote in a research note on Friday. As before, they expect the Fed to cut interest rates by 25 basis points at its next meeting. The forecast assumes a "gradual economic slowdown" and an unemployment rate slightly higher than the Fed's long-term forecast (3.5%-4.3% in December). (Golden Ten)