UNITED STATES (VOP TODAY NEWS) — Wall Street economists predict that the US Federal Reserve (Fed) will postpone the interest rate increase at a later date, showed The Wall Street Journal poll.
At the same time, their forecasts can still be called “hawkish” compared to market expectations.
The results of the survey, in particular, showed that 57% of economists are waiting for the next rate increase in September or later. In February, so long this moment was postponed by 35% of respondents, in January – only 13%.
At the same time, according to the data of the FedWatch tool of the stock exchange operator CME, market participants consider the likelihood of a Fed rate hike at the next 6-7 meetings zero, while the chances of its decline reach 20%. A similar tool from Bloomberg shows zero chances of a rate hike by the end of January 2020.
About 18% of economists surveyed by the WSJ believe that the Fed has completed the rate hike cycle and, if it changes them, it will only decrease. In February such an answer was chosen by 10%, in January – only 4%.
The Fed leaders, in turn, argue that while there is no reason to change interest rates, you need to wait for how the US economy will react to trade disputes, slowing growth in China and Europe, and the consequences of the UK leaving the European Union.
As is known, the next Fed meeting will be held March 19-20.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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