More economists predicting interest rate cut

NEW YORK – June 14, 2019 – A Wall Street Journal poll of 46 economists finds that about 75% believe the Federal Reserve will lower interest rates – an increase from 50% who took the same view in May.

Most of the survey-takers expect the move to come either in July or September, however – few expect a reduction as early as the central bank’s meeting next week.

An interest-rate cut would directly impact adjustable-rate mortgages and other short-term debt. It also often impacts long-term mortgage rates, though only indirectly.

Fed officials have sustained the 2.25% to 2.5% benchmark rate since December, but, on average, economists anticipate a drop in the rate to 2.12% by year’s end and to 1.96% by the end of next year.

Source:  Wall Street Journal (06/13/19) Davidson, Kate

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