Morgan Stanley economists said on Thursday they expected the Federal Reserve will raise U.S. interest rates by a quarter point to a range of 0.75-1.00 percent at its upcoming policy meeting in less than two weeks.
The U.S. central bank would increase its interest rate target range two more times later in 2017 after a possible hike later this month, they said in a research note.
They forecast four rate hikes in 2018.
The economists’ latest view on a March rate increase followed remarks from New York Fed President William Dudley who said on CNN on Tuesday that the case for a rate hike has become “a lot more compelling.”
This notion from Dudley, one of the most influential U.S. central bankers, has been echoed by a number of Fed officials in the past 48 hours.
On Thursday, Fed Governor Jerome Powell told CNBC the case for a March rate increase has come together with domestic inflation nearing the Fed’s 2 percent goal.
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