(Reuters) – Barclays expects the Federal Reserve to deliver its first rate cut of 25 basis points in June, with two others expected at every other meeting, citing soft producer price index (PPI) data and Powell’s “lack of pushback” on rate-cut expectations.
The brokerage had previously forecast a single December rate cut in 2024.
“However, we place upside risk to our projected rate path as the recent easing in financial conditions may boost growth and ultimately result in stalling disinflation,” Barclays economists said in a note on Wednesday.
(Reporting by Reshma Rockie George in Bengaluru; Editing by Sonia Cheema)
