CNBC Survey Predicts Fed Rate Pause This Week Followed by December Hike
A CNBC survey of 30 fund managers, strategists, and economists indicates a strong consensus for the Federal Reserve to pause interest rate hikes during its upcoming meeting, with 93% of respondents expecting no change. However, expectations shift toward tightening in the near term, as 76% anticipate a rate hike in December and more than half forecast an average of two additional hikes throughout next year. The survey highlights a divide regarding economic management; while many see inflation as broad-based and requiring growth deceleration, others warn against further hikes due to weakening real wages and geopolitical tensions. Despite these concerns, GDP forecasts remain relatively robust, with 2024 growth projected at 2.4%, though respondents noted risks such as the intensification of the Iran war and a potential burst in the artificial intelligence sector.
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Topics: Economic Survey Federal Reserve Inflation Interest Rates