On average, economists expect inflation, as measured by the annual increase in the consumer-price index, to end this year at 3.53%, up from 3.1% in the January survey. But whereas markets expect the Fed to then cut rates by year-end, only 39% of economists surveyed agree; most see no rate cut before 2024. “Inflation will remain on a downward trajectory the rest of 2023,” added Bernard Baumohl, chief economist of the Economic Outlook Group. Economists expect stagnant growth this year, forecasting inflation-adjusted gross domestic product to rise just 0.5% in the fourth quarter of 2023 from the fourth quarter of 2022. Economists expect that pace to slow considerably and turn negative later this year.

Source: Wall Street Journal April 15, 2023 23:27 UTC