Fitch Predicts Fed Will Lower Interest Rates in September and December
Fitch Ratings Predicts Soft Landing for US Economy
Credit rating agency Fitch Ratings has released a statement predicting a “soft landing” for the US economy, with moderate inflation and low unemployment. The agency expects economic growth to decrease from 2.5 percent in 2023 to 2.1 percent this year.
Fitch also stated that two interest rate cuts are likely to occur in September and December. The agency noted that the credit environment in the country may weaken slightly in the second half of the year.
According to Fitch, consumer spending growth remains strong but is expected to ease as nominal wage and employment growth slow down. Housing demand has remained robust, although it has softened recently due to higher housing prices. However, affordability may improve with falling interest rates.
Overall, Fitch Ratings’ forecast suggests a relatively stable economic outlook for the US, with measured growth and manageable inflation. Investors and policymakers will be monitoring these developments closely in the coming months.
