Three Fed rate hikes seen in 2018 – Bloomberg Survey
According to the results of Bloomberg survey, a majority of the economists see the Fed raising the interest rates three times next year.
Key Findings:
Three rate hikes seen in 2018: March, September, December.
Fed's growth forecast likely to be revised to 2.3% from 2.1% than in September's meeting projections.
The revision in forecast comes from the new tax plan and faster global growth.
63% of respondents say risks to monetary policy is to the upside.
90% of respondents expect future path of interest rates over the next 2 years to be "about the same" under Powell, as compared to Yellen.
45% said an external economic/financial shock would present the greatest risk to markets in 2018.
39 of 41 respondents expect 2018 inflation to run around 1.9% based on the core PCE inflation reading, while expecting the GDP growth to come in around 2.3% next year.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
