Overnight issue from Moody's analysts. Forecasting:
- Federal Reserve policy rate to end this year in the 3.5 to 3.75% range
- and above 4% by March 2023
More:
Says that data from the US and Eurozone are confirming slowing momentum in their economies
- US and euro-zone interest-sensitive consumer, residential, business investment activity will continue to moderate over coming quarters
- US real GDP growth of 2.1% expected this year and 1.3% in 2023
- Periodic disruptions of gas supply from Russia will cause growth in the euro area to decelerate sharply.
- Moody's baseline scenario if for euro area real GDP expected to grow 2.2% in 2022 and by 0.9% in 2023
On the ECB and Fed:
- FOMC expected to continue with front-loaded rate increases in upcoming meetings
- Expecting ECB to embark on a hawkish monetary policy path over the course of its upcoming meetings in the euro area.
