MCO Moodys Corp

By Will Feuer

Moody's Corp. updated its outlook for the global economy, saying it expects more economic growth in the U.S. and Europe.

The New York credit-ratings and research firm said it now expects U.S. GDP growth of 0.5% to 1.5%, up from its prior guidance issued on Jan. 31 of 0.0% to 1.0%.

Euro area GDP growth of 0.0% to 1.0% is expected, compared with prior guidance for that economy to contract by 0.0% to 1.0%.

Outlook for U.S. inflation remains unchanged, but Euro area inflation of about 6% is expected in large economies, compared with prior guidance for inflation in such countries to average between 5% and 9%.

Global benchmark interest rates are expected to remain elevated, with the potential for the U.S. Fed funds rate to be reduced in early 2024. Moody's previously expected the U.S. to cut rates toward the end of this year.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

April 25, 2023 07:53 ET (11:53 GMT)

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