Economists Lift US Core Inflation View to 3.2%, Pushing Fed Cuts to 2027
Updated
Updated · Bloomberg · Jun 27
Economists Lift US Core Inflation View to 3.2%, Pushing Fed Cuts to 2027
3 articles · Updated · Bloomberg · Jun 27
Summary
Bloomberg-surveyed economists now see core PCE inflation rising 3.2% in the fourth quarter from a year earlier, up from their prior forecast.
Higher inflation expectations, along with upgraded job-creation estimates, led forecasters to drop any expectation of a Federal Reserve rate cut until well into 2027.
Overall US inflation forecasts were little changed at 3.5%, suggesting the shift in the rates outlook was driven mainly by stickier underlying price pressures.
The revised outlook points to a longer stretch of steady Fed policy as resilient labor demand and persistent core inflation keep pressure on policymakers.