Survey: Fed to Keep Rates Unchanged in October and Hike in December
94 out of 100 economists in a Reuters survey expect the Fed to keep interest rates between 3.75% and 4.00% in October, while all participants expected a rate hike in December.
Ninety-four out of 100 economists surveyed by Reuters expect the U.S. Federal Reserve to keep interest rates in the 3.75% to 4.00% range during its scheduled meeting on October 27 and 28, while all participants expect a rate hike in December.
About 60% of participants expect the interest rate to peak in the range of 4.00% to 4.25%.
The survey comes ahead of the Federal Open Market Committee meeting on October 27 and 28, the body that sets interest rates in the United States.
The survey was conducted from October 16 to 20, showing a sharp shift from last month's survey in interest rate path expectations.
What do these terms mean?
Federal Reserve: The central bank of the United States, responsible for making monetary policy decisions and setting interest rates.
Interest Rate: The rate set by the Fed that influences borrowing costs across the economy.
Federal Open Market Committee: The committee responsible for setting U.S. interest rates, comprising members of the Federal Reserve Board and presidents of regional Reserve Banks.
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