CNBC Fed Survey Insights

The latest CNBC Fed Survey reveals that 70% of economists believe the Federal Reserve should pause interest rate hikes. Nearly 60% predict a recession by the end of 2024, with inflation expected to remain above 2% for the next two years.

Impact of Trump’s Pressure Campaign

The survey also highlights concerns over former President Trump’s pressure on the Fed, with 65% of respondents suggesting it could undermine the central bank’s independence. Economists warn that political influence may lead to risky monetary policies affecting economic stability.

Market Reactions and Predictions

Market experts anticipate volatility, with 55% of survey participants expecting stock market declines if the Fed continues its current trajectory. A significant 75% believe economic conditions will worsen before improving, emphasizing the need for cautious policymaking.

Overall Economic Sentiment

Overall, the survey reflects a cautious economic sentiment among experts, with many advocating for strategic measures to navigate potential downturns and inflationary pressures. The findings indicate a critical juncture for the Fed as it balances growth and stability.