Fitch: Expects the Fed to delay rate cuts until the fourth quarter of 2025

On March 18, Fitch, an international rating agency, stated that it has lowered its forecast for the US 2025 economic rise from 2.1% to 1.7%. The US government has initiated a global trade war, which is expected to impact the US and global economic rise, increase US inflation, and delay the Fed's interest rate drop. The loose fiscal policies of China and Germany will help mitigate the impact of increased US import tariffs. It is expected that the economic rise in the Eurozone this year will be lower than the forecast in December 2024 Global Economic Outlook (1.2%). The tariff impact is expected to increase short-term inflation in the US by 1 percentage point, and the Fed is expected to further delay interest rate cuts until the fourth quarter of 2025.(Jin10 )