by Subhadeep Chakravarty
(Reuters) – Barclays announced on Wednesday that it no longer anticipates an increase in interest rates from the American Federal Reserve (Fed) in January while the intermediary previously forecast an increase in the cost of credit in the United States of 25 points base, which would have brought the federal funds rate to 5.50%-5.75%.
The British investment bank estimates that rates will remain broadly unchanged in the United States until December 2024.
She expects the Fed to lower the federal funds rate target to 5.00%-5.25% at the end of 2024 and to 4.00%-4.25% at the end of 2025.
“However, we continue to believe that risks are tilted to the upside, with rate hikes likely in 2024, if progress on disinflation fades,” Barclays economists write in a report led by Marc Giannoni .
At their latest monetary policy meeting, Fed officials agreed to proceed “cautiously” and only raise interest rates if progress in controlling inflation falters, Tuesday showed. evening the report of this meeting which was held from October 31 to November 1.
Contrary to the majority of the major Wall Street banks which had already indicated that they expected a probable end to the Fed’s rate increases, Barclays had so far maintained its forecasts of an additional increase in the interest rate in January. 2024 before this Wednesday’s announcement.
(Reporting Subhadeep Chakravarty; Claude Chendjou, edited by Blandine Hénault)
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