S&P expects first Fed rate cut in December

S&P Global Ratings reported that the US Federal Reserve (Fed) is likely to begin its rate cut cycle in December. In a statement made by S&P Global Ratings, it was conveyed that interest rate forecasts for the US were revised due to the latest economic data and other developments. It was stated in the statement that it was thought that the conditions required for the Fed to ease monetary policy would not be created before the fall, and it was now expected that the Fed could begin its rate cut cycle in December. In the statement, it was stated that the data released in recent weeks showed that the US economy had strong momentum in the first quarter, while at the same time, the disinflation momentum of last year had disappeared. S&P Global Ratings' statement said, "We now believe that the Fed will not cut rates unless we see several consecutive data sets showing that monthly core inflation is slowing." It was stated in the statement that the risk of not cutting rates this year has increased, and that despite the upward surprises in the latest inflation data, it was thought that last year's disinflation trend continued unabated. "We also do not think the Fed will feel the need to start raising interest rates again," the statement said.