A new survey of former Fed insiders shows the interest rate outlook is becoming milder and conservative
According to online reports, the views of former Fed officials and employees on the U.S. economy and the Fed's prospects collected by former Wall Street Journal economic reporter Jon Hilsenrath show that former Fed officials and employees expect unemployment and inflation to rise in the coming months, which may complicate the Fed's judgment on interest rate decisions. Respondents said they expect the Federal Reserve to maintain its forecast of cutting interest rates by 25 basis points twice during the year, although many former officials believe that it may be more appropriate to cut interest rates once or even no interest rate. The results of the survey are released as the Federal Reserve is about to hold a policy meeting this week, when Fed officials will release economic forecasts. This will be the first time the Federal Reserve has released economic forecasts since Trump announced a wide-ranging import tariff policy. The federal budget bill being advanced in Congress may also become an important consideration in the Fed's decision this week.
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