Reuters Poll: Over 80% of Economists Expect Fed to Raise Rates to 3.75%-4.00% in September

BlockBeats news, September 14 - According to a Reuters survey, most economists believe the Federal Reserve will raise interest rates this week and hike at least once more by the end of March next year, reversing the previously widespread fragile consensus on keeping rates unchanged. Following last Friday's inflation report, the Reuters survey showed that 85% of economists expect the Fed to raise rates by 25 basis points at its September meeting, bringing the rate to 3.75%-4.00%, which would be the first rate hike since July 2023.

Nearly 53% of forecasters expect at least one more rate hike by the end of March, compared with 56% last week who thought rates would remain unchanged. The mainstream view of rate cuts in 2027 no longer exists. Stephen Juneau, senior economist at Bank of America, said: "Warsh has effectively cornered himself into a situation where the Fed will only abandon rate hikes if the data comes in very weak." He has been expecting three rate hikes this year since June. "We hadn't reached that expectation... then we got this inflation report, and the situation became clearer." (Jinshi)