In order to curb high inflation, in addition to raising interest rates to the level that restricts economic activities, most of the 44 economists surveyed believe that the Federal Reserve will maintain interest rates at peak levels for a period of time.
The easing of price pressure, instability of financial market and deterioration of labor market are the most likely reasons for the Federal Reserve to suspend its tightening action. However, 68% of respondents said that it is expected that the Federal Reserve will not reduce the federal funds rate until 2024 at the earliest.
A quarter of them do not expect the Federal Reserve to cut interest rates until the second half of 2024 or later.