Deregulation, tax cuts and tariffs stoke probability of stubbornly high price growth, FT-Chicago Booth poll finds
The Federal Reserve is set to take a more cautious approach to interest rate cuts on fears that the Trump administration’s policies will stoke higher inflation, according to academic economists polled by the Financial Times. The economists, who were surveyed between December 11 and 13, moved up their forecasts for the federal funds rate next year compared to the previous FT-Chicago Booth poll in September. The vast majority thought it would hover at 3.
Looming large over the policy outlook is the return of Donald Trump to the White House next month. Trump has vowed to enact sweeping tariffs and deport millions of Americans while also slashing taxes and regulations. Just over 60 per cent of the economists polled in the survey, which was conducted in partnership with the University of Chicago Booth School of Business, thought Trump’s plans would have a negative impact on US growth.
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