Survey shows analysts are moving Fed rate hike expectations even earlier

  
Analysis, US Market
  • Reuters with the polling, analysts shifting their Federal Reserve rate hike projections to Q3 2022 from Q4 in the survey for the previous month,

30 of the 36 economists asked say they now expect the Fed ‘lift-off’ rate hike to come earleir than they had previously projected.

  • in Q3 2021 from Q4 previously thought.

Most thought there is a risk of even sooner than Q3.

Citing:

  • persistently higher inflation

But wary of once again rising COVID-19 cases globally and the Omicron mutant.

Further out:

  • three more hikes – in Q4 next year and Q1 and Q2 of 2023. The fed funds rate was expected to reach 1.25-1.50% by end-2023.
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