Economists say Fed rate hikes are over

According to the chief economists of American banks, the Fed is done raising interest rates and will start cutting rates next year. According to a survey conducted by the Economic Advisory Committee of the American Banking Association (ABA), the chief economists of large banks do not expect a recession in the coming quarters, but they do expect growth rates to slow significantly. With the impact of the Fed's tightening, economists expect annualized growth in the US to be below 1 percent for the next three quarters. "Given the path covered in inflation, the majority of the committee members think the Fed has finished its tightening cycle naturally," said Simona Mocuta, chief economist of State Street Global Advisors, who chairs the 14-member committee. The Fed, which will announce its interest rate decision on September 20, is expected to keep interest rates steady. The critical August CPI data before the interest rate decision will be announced on September 13. The ABA committee includes chief economists from large banks such as JPMorgan, Morgan Stanley and Wells Fargo.