by Mike ‘Mish’ Shedlock
Mish Talk
Here’s a hoot. A Wall Street Survey shows Economists Expect December Rate Hike.
Why? Because economic uncertainty will allegedly vanish between September and December.
A consensus is forming among economists that the Federal Reserve will hold off on its next interest-rate increase until December.
About 71% of the 62 economists surveyed by The Wall Street Journal this month 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.
In a July 31 speech, New York Fed President William Dudley argued “for caution in raising U.S. short-term interest rates.” Yet he added “it is premature to rule out further monetary policy tightening this year.”