Reuters Poll: All 100 Economists Expect Fed to Raise Rates in December
Summary
- Reuters reported that all 100 economists in its survey expect a Fed rate hike in December.
- It said 94 respondents expect the Fed to hold rates at 3.75% to 4.00% at this month's FOMC meeting.
- Reuters reported that Alex Pelle sees a 25-basis-point to 50-basis-point hike by the Fed in December as likely.
Forecast Trend Report by Period
Economists overwhelmingly expect the Federal Reserve to leave interest rates unchanged this month before raising them in December.
Odaily, a cryptocurrency-focused media outlet, reported on October 20 that all 100 economists surveyed by Reuters expect the Fed to hike rates in December.
For this month's Federal Open Market Committee meeting, 94 of the 100 respondents forecast that the Fed will keep its benchmark rate unchanged at 3.75% to 4.00%.
That marks a sharp shift from last month's survey, when fewer than half of respondents expected a December rate increase. The change appears to reflect persistent inflation pressure, even as Fed officials have signaled they want to review additional data rather than raise rates immediately.
Alex Pelle, chief U.S. economist at Mizuho Bank, said the economy remains strong and inflation is rising. In his view, the Fed's decision not to raise rates in October was a mistake.
Pelle expects the Fed to deliver a 25-basis-point increase in December. He also said a 50-basis-point hike is ultimately more likely than no increase at all.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.