WSJ Survey: Economists point to Dec Fed rate hike

Latest survey conducted by the Wall Street Journal on Fed rate hike prospects for this year, revealed that the Fed is likely to keep the interest rates unchanged until December.

Key findings from the survey:

“About 71% of the 62 economists surveyed said the Fed will next raise short-term rates at its Dec. 13-14 meeting. That is a sharp rise from the July survey, where half said policy makers would next move in December, and from the June survey, where just 7.8% held that view.”

“Economists in the survey indicated they doubted the uncertainty in the economic outlook would clear up in time for the Fed to raise rates at its meeting Sept. 20-21. By December, however, the picture should be clearer, they said. That should allow the Fed to raise rates at least once in 2016, after last raising them by a quarter percentage point in December 2015.”