Bloomberg survey shows economists expect the Federal Reserve to cut interest rates twice in 2026, with doubts about Powell.

According to a survey conducted by Bloomberg News, economists have postponed their expectations for the next interest rate cut by the Federal Reserve from March to June, but still predict two 25 basis point rate cuts before the end of the year. The 46 economists surveyed expect the rate cuts to be faster than what is expected by the futures market. Based on the median expectations, this is also one more rate cut than what Federal Reserve officials leaned towards in December last year. Nearly one-third of the economists surveyed also expressed doubts about Kevin Warsh. President Donald Trump nominated this former Federal Reserve Board member to succeed Jerome Powell as Chairman of the Federal Reserve. When asked if they believe Warsh will be committed to achieving the Fed's 2% inflation target, 13% of respondents said they were uncertain, while 18% clearly stated that they "do not believe". Among those who expressed doubts about Warsh's determination to achieve the inflation target, most do not believe or are uncertain whether the Committee as a whole will continue to be committed to achieving this goal.