Fitch Ratings predicts that the Federal Reserve will only cut interest rates once this year

According to a report by Golden Finance, Fitch Ratings stated in its latest global economic outlook that it expects global economic growth to slow down to 2.3% this year, far below trend levels and below the 2.9% in 2024. Meanwhile, Fitch Ratings lowered its forecast for US economic growth from 2.1% in December last year to 1.7%, and lowered its growth forecast for 2026 from 1.7% to 1.5%. Fitch Ratings stated that the tariff increase will lead to higher prices for American consumers, lower real wages, increase business costs, and the surge in policy uncertainty will have an impact on business investment. It is estimated that the tariff shock will cause a 1% increase in recent inflation in the United States, and we believe that the Federal Reserve will postpone further policy easing until the fourth quarter of 2025. We now expect the Federal Reserve to only cut interest rates once this year, but with the economy slowing down and tariff levels stabilizing, we expect to cut interest rates three more times in 2026. (Golden Ten)