Federal Reserve will opt for slow policy easing as there's 'still work to do' on inflation, Fitch says

Published On Sep 12, 2024, 8:39 PM

Fitch Ratings predicts that the Federal Reserve will gradually ease monetary policy, with a total of 250 basis points in rate cuts over the next 25 months. This easing is likely to start with a 25 basis point reduction in September and another cut in December. Despite the easing, Fitch emphasizes that inflation remains an ongoing concern, with current CPI rates still above the Fed's target of 2%. Meanwhile, other global central banks, like the People’s Bank of China and the Bank of Japan, are approaching monetary policy differently, with the former expected to cut rates and the latter continuing to raise them.