Respondents to the March CNBC Fed Survey have raised the risk of recession to the highest level in six months, cut their growth forecast for 2025, and hiked their inflation outlook due to concerns over fiscal policies from the Trump administration, especially tariffs.
Key Points
Recession risk raised to 36% from 23% in January
Growth forecast for 2025 lowered, inflation outlook raised
Concerns over Trump administration's trade policies and tariffs
Federal Reserve expected to cut rates at least twice
Policy uncertainty creating wider range of views on the Fed
Pros
Survey provides insights into market sentiment and economic forecasts
Highlights concerns over fiscal policies and potential economic risks
Cons
Uncertainty in economic outlook due to policy volatility and trade tensions