Head of Pictet Macro Economic Research: The Federal Reserve may lower GDP forecasts and raise inflation expectations

ChainCatcher News, Frederik Ducrozet, the head of macroeconomic research at Pictet Wealth Management, said in a report that he expects the Federal Reserve to keep interest rates unchanged at tonight's meeting. Fed Chairman Powell may reiterate that there is no rush to cut rates. The Fed is expected to lower its GDP forecast for 2025 and raise inflation estimates while acknowledging increased uncertainty.

The dot plot is expected to show an unchanged median expectation of two rate cuts this year, with risks leaning towards one rate cut. The Fed will cut rates once in June due to accelerating inflation again; there will be no further rate cuts in 2025.