Economic growth is slowing mostly in line with our expectations, but we think recession risks remain low. We make only marginal adjustments to our forecast profile and see 2024 GDP growth at 2.5% (from 2.3%) and 2025 at 1.5% (unchanged), Danske Bank macro analysts note.
Fed to reach a terminal policy rate of 3.00-3.25%
“Potential output continues to grow at a brisk pace, supported by increases in labour supply, solid productivity growth and fiscal policy driven demand for manufacturing investments.”
“Risks to the outlook remain somewhat skewed to the downside. The current low savings rate indicates that consumers' buffers remain weak. Slow monetary policy pass-through and high share of fixed rate mortgages suggest that rate cuts will not provide a rapid boost to economic growth, if the outlook deteriorates faster than we expect.”
“Inflation forecasts have been adjusted modestly lower. We see headline inflation averaging 2.9% in 2024 (from 3.2%) and 2.2% in 2025 (from 2.5%) and core inflation at 3.3% in 2024 (from 3.4%) and 2.4% in 2025 (from 2.6%). We now expect the Fed to cut interest rates by 25bp at every meeting from September until June 2025 (prev. only every other meeting from September), followed by two final cuts in H2 2025 (terminal rate 3.00-3.25%; prev. 3.75-4.00%).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD: Initial contention emerges near 0.6680](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/australian-currency-23690700_XtraSmall.jpg)
AUD/USD: Initial contention emerges near 0.6680
AUD/USD regained some balance and reclaimed the area beyond the 0.6700 barrier, managing to rebound from earlier two-week lows in the 0.6685-0.6680 band on the back of renewed weakness in the US Dollar.
![EUR/USD came short of another test of 1.1100](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/usd-eur-banknotes-58361490_XtraSmall.jpg)
EUR/USD came short of another test of 1.1100
EUR/USD found some fresh legs in the data-driven pullback in the Greenback, rebounding to the boundaries of 1.1100 the figure amidst expectations that the Fed might reduce its rates by 50 bps in September.
![Gold battles to regain the $2,500 mark](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/safe-investment-gm147322399-17568598_XtraSmall.jpg)
Gold battles to regain the $2,500 mark
After touching its lowest level since mid-August near $2,470, Gold stages a rebound and trades near $2,500. The benchmark 10-year US Treasury bond yield stays in the red below 3.8% after US data, providing a lift to XAU/USD.
![Bitcoin extends losses, risking further declines if it closes below $56,000](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin extends losses, risking further declines if it closes below $56,000
Bitcoin (BTC) extends its decline by 1.5% on Wednesday, following the rejection from the key resistance level on Tuesday and hurt by a drop in the US stock market. This downtrend may persist if BTC falls below the $56,000 support level, especially as US spot Bitcoin ETFs saw an outflow of almost $290 million.
![Canada Interest Rate Decision Preview: BoC expected to cut interest rates by 25 bps on September 4](https://editorial.fxstreet.com/images/Macroeconomics/CentralBanks/BOC/Bank_of_Canada_2016_XtraSmall.jpg)
Canada Interest Rate Decision Preview: BoC expected to cut interest rates by 25 bps on September 4
There is widespread expectation that the BoC will lower its policy rate for the third consecutive meeting on September 4. Mirroring previous decisions by the central bank, this move would most likely be of 25 basis points, taking the benchmark interest rate to 4.25%.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.