The Federal Reserve is viewed as having too much influence on capital markets and is seen as behind the curve when it comes to interest rates, according to a new online Wall Street survey.
Fifty-nine percent of respondents to the survey, conducted by ConvergEx Group, said the central bank was behind the curve with respect to interest rates, given its dual mandate of maximizing employment and controlling inflation.
Thirty-two percent said rates were just right at current levels. The survey of 219 investment professionals from the buy-side, sell-side and trading venues, was conducted Aug. 12 to 14, just ahead of the Fed’s annual Jackson Hole, Wyoming, symposium this week.
That contrasts somewhat with the findings of CNBC’s own Fed survey, which found 49 percent of respondents said the central bank was just right when it came to accommodation. Forty-six percent said it was too accommodative. Thirty-six economists, fund managers and analysts participated in the CNBC survey.
Two-thirds of the respondents in ConvergEx’s survey said the Fed has too much influence on capital markets, and 38 percent said they were confident the Fed was making the right policy decisions. But 34 percent combined said they were not confident the Fed was making the right decisions, while 28 percent were neutral.