CNBC Fed Survey Points to December Rate Hike

Prepare for a holiday hike.

That’s the message from the latest CNBC Fed Survey, where 90 percent of the 41 respondents say the Federal Reserve won’t increase interest rates at its September meeting this week. But 88 percent say the hike is coming in December.

“Expect the Fed to stay on the sidelines until after the election so they cannot be characterized as impacting the election in any way,” said John Roberts, senior vice president and director of research of Hilliard Lyons. “Recent economic statistics have been ambiguous enough to provide the Fed cover for such inactivity.”

But the near unanimity over what the Fed will do masks widespread disagreement over what the Fed should do. Jim Bianco, founder of Bianco Research, wrote, “The longer the Fed goes without hiking, the more its credibility is hurt.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza