Fitch: Fed expected to cut rates only once this year

Odaily Planet Daily News Fitch said in its latest global economic outlook that global economic growth is expected to slow to 2.3% this year, well below trend and lower than 2.9% in 2024. At the same time, Fitch lowered its forecast for US economic growth from 2.1% in December last year to 1.7%, and lowered its growth forecast for 2026 from 1.7% to 1.5%. Fitch said that the increase in tariffs will lead to higher consumer prices in the United States, lower real wages, and increase corporate costs, and the surge in policy uncertainty will have an impact on corporate investment. It is estimated that the tariff shock will increase US inflation by 1% in the near term, and it is believed that the Federal Reserve will postpone further easing until the fourth quarter of 2025. We now expect the Federal Reserve to cut interest rates only once this year, but as the economy slows and tariff levels stabilize, we expect three more rate cuts in 2026. (Jinshi)