Fitch forecasts US recession in H1 2024, another Fed rate hike is also expected

Lallalit Srijandorn FXStreet

Fitch Ratings stated in its latest economic forecast that global economic growth is deteriorating, owing to "the deepening slump in China's property market, casting a shadow over global growth prospects just as tighter financial conditions weigh on the demand outlook in the US and Europe.”

Key quote

"Fitch expects the US to fall into recession in the first half of 2024."

"Federal Reserve “is now close to reaching a peak on rates and we expect just one more 25-basis-point hike to 5.75%. But core inflation is still high — particularly in services — and we have pushed back the date of the first Fed rate cut to May 2024.”

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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