Fitch Ratings forecasts two US rate-cuts before year-end

Fitch Ratings said on Wednesday it forecasts the U.S. Federal Reserve would cut interest rates twice this year – in September and December.

The ratings agency cited moderating inflation and a resilient economy as factors supporting its projections.

“Fitch is forecasting two rate cuts in September and December. A soft landing is likely with moderating inflation and low unemployment, and we are projecting annual economic growth of 2.1 per cent, down from 2.5 per cent in 2023.” Fitch said.

While consumer spending has shown signs of slowing, the overall economic outlook remains positive, according to Fitch. However, the agency also warned of a potential weakening credit environment in the latter half of the year.

Attribution: Fitch Ratings