Macquarie Group economists expect the Federal Reserve to start easing monetary policy in December — not in the first quarter of 2025 — thanks to the recent decline in inflation.
“Broad indicators show clear improvement, which is conducive to lower inflation,” economist David Doyle wrote on Tuesday about the May CPI report. “This improvement, coupled with more mixed signals from the labor market, prompts us to bring forward our base case forecast for FOMC easing.”
Macquarie now expects a 25 basis point rate cut in the fourth quarter, specifically in December; previously expected in the first quarter of 2025. (Financial World)