News · taiwansun.com

Economists unanimously expect Fed rate hike in December

Expectations for a Fed rate hike in December have surged, with all 100 economists in a Reuters poll (October 16–20) now forecasting one, versus fewer than half in last month's survey. For the October 27–28 meeting, 94 of 100 economists expect the federal funds rate to stay at 3.75 percent–4.00 percent. Nearly 60 percent expect the policy rate to peak at 4.00 percent–4.25 percent, and 38 of 92 respondents forecast at least two more increases. Inflation has stayed above the Fed's two percent target for nearly six years, while higher energy costs and new tariffs add price pressures; U.S. growth was 2.2 percent in the second quarter and is forecast at 3.2 percent in the third.

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