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GOOLSBY, Federal Reserve: The Federal Reserve forecasts show that the vast majority believe that economic conditions will continue to improve over the next 12 to 18 months, with interest rates gradually falling sharply.
The Fed meeting notes: "An overwhelming majority of members" think a September rate cut may be appropriate.
The vast majority of economists surveyed by Bloomberg expect the Fed to cut rates by just 25 basis points in September, contradicting calls from some of Wall Street's biggest banks for a big cut at their next meeting. Nearly four-fifths of survey participants expect the Fed to cut rates to a range of 5-5.25 per cent at its September 17-18 meeting, with most of the remaining economists expecting a sharper cut. The median forecast also showed that the Fed will cut interest rates at its scheduled m...
