Economists double down on December Fed cut despite policymaker divide: Reuters Poll

By Sarupya Ganguly

BENGALURU, Dec 4 (Reuters) – The U.S. Federal Reserve will reduce its key interest rate by a quarter-percentage point at the December 9-10 policy meeting to support a cooling labour market, according to a majority of over 100 economists surveyed by Reuters.

That strong consensus broadly mirrored a November poll and the near-85% chance of a cut implied by rate futures but was in sharp contrast to the growing division among policymakers over whether the world’s largest economy needs another dose of easing next week.

Following a 25-basis-point cut in October, Fed Chair Jerome Powell cautioned against inflation reigniting and stressed a December move was far from a “foregone conclusion.” Inflation has stayed above the Fed’s 2% target since March 2021.

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