Poll:Fed likely to cut US interest rates by middle of next year

The Financial Express reports:

US interest rates have peaked and the Federal Reserve will cut them by mid-next year to revive slowing economic growth stemming from a weakened housing market, according to a Reuters poll on Tuesday.

A poll of 62 economists showed a median expectation the central bank will cut its fed funds rate to 5% in the second quarter of 2007 from its current 5.25% and again to 4.75% in the third quarter of next year. The timing of a first rate cut is earlier than the third quarter predicted in a similar poll one month ago and is a sharp change in sentiment from three months ago when analysts expected the Fed to deliver one more hike this year.

We'll believe it when it happens.