Tags: federal reserve | interest rate | hike | economy

CNBC Survey: Wall Street Doesn't Expect Fed Rate Hike Until July 2015

Wednesday, 20 Aug 2014 02:18 PM

By Dan Weil

Some financial commentators have grown excited by signs of economic strength in recent weeks, saying the Federal Reserve may raise interest rates as soon as late this year.

Think again, say experts on Wall Street. A CNBC survey of 36 prominent economists, fund managers and analysts on average forecast that the first rate hike will come in July 2015.

The Fed has kept its federal funds rate target at a record low of zero to 0.25 percent since December 2008.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

Survey respondents predict the rate-hike cycle will close in the fourth quarter of 2017 with the fed funds rate at 3.16 percent. That would be the lowest terminal rate in history, easily besting the 5.25 percent close of the 2004-2006 rate increases, according to CNBC.

The estimate of 30 months for the rate-hike cycle compares to a 21-month average since 1983.

"The Fed is going to move very slowly," Scott Wren, senior equity strategist at Wells Fargo Advisors, wrote in his survey response. "This modest growth/modest inflation environment is unlikely to change."

Meanwhile, 30 economists in a recent Wall Street Journal survey voiced concern that the Fed will wait too long to hike rates, with only three worried the Fed will act too soon.

It's not just economists who fear the Fed is too dovish. "They are making me nervous," Arun Raha, chief global economist for industrial manufacturer Eaton Corp., told The Journal.

"Given the strength of the job market, manufacturing and non-residential construction, it's about time they got rid of their low-rates-for-an-extended-period viewpoint."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

Related Stories:





© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

UK Tycoon Warns of Major Recession to Be Remembered for '100 Years'

Friday, 30 Jan 2015 13:08 PM

U.K. hedge fund heavyweight Crispin Odey, founder of Odey Asset Management, predicts the current global economic weaknes . . .

Reuters Poll: Oil Price Will Average Less in 2015 Than During Financial Crisis

Friday, 30 Jan 2015 11:55 AM

Crude oil will likely continue falling before posting only a mild recovery in the second half of this year, a Reuters su . . .

Worker Pay in US Rose at a Slower Pace in Fourth Quarter

Friday, 30 Jan 2015 10:30 AM

Wages and salaries in the U.S. rose at a slower pace in the fourth quarter, indicating workers have limited success barg . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved