The Organisation for Economic Co-operation and Development (OECD) has indicated that the U.S. Federal Reserve may still have room to lower interest rates three additional times, even as inflation remains above target. This projection comes amid expectations of a slowing economy and a cooling labor market. n nBased in Paris, the OECD now forecasts that U.S. interest rates will fall to a range of 3.25% to 3.5% by next spring, following the Fed’s recent decision to reduce borrowing costs by 25 basis points. n nThe organization expects U.S. economic growth to slow to 1.8% this year, down from 2.8% in 2024, with a further deceleration to 1.5% projected for 2026. Despite these headwinds, the world’s largest economy has shown notable resilience against rising tariff pressures, partly due to strong investment in information technology, including artificial intelligence. n— news from Al-Borsa Newspaper
— News Original —nEconomic Cooperation Organization: Fed Can Cut Rates Three Additional TimesnThe Organisation for Economic Co-operation and Development clarified that the U.S. Federal Reserve could cut interest rates three additional times despite U.S. inflation exceeding the target, as it expects the economy and labor market to slow. n nThe Paris-based organization currently expects U.S. interest rates to decline to a range between 3.25% and 3.5% by next spring, after the Fed decided last week to lower borrowing costs by 25 basis points. n nThe organization expects U.S. economic growth to slow to 1.8% this year, after growing 2.8% in 2024, before slowing further to 1.5% in 2026. n nDespite the world’s largest economy showing relative resilience against rising tariff pressures, partly due to very strong investment in the information technology sector, including artificial intelligence.