100 economists unanimously expect the Fed to raise rates again in December

Odaily reports: A latest Reuters survey shows that market expectations for the Federal Reserve's interest rate outlook are undergoing a notable shift. Expectations for an October rate hike have cooled somewhat, but a December rate hike has become the consensus view among surveyed economists, reflecting how strong economic growth and stubborn inflationary pressure are once again influencing monetary policy expectations.

In the survey conducted from October 16 to 20, 94 economists expected the Federal Reserve to keep the federal funds rate in the 3.75% to 4.00% range at its October 27-28 meeting. This view is consistent with expectations reflected in market pricing, and the meeting comes just days before the U.S. midterm elections in November.

By contrast, rate expectations for December have shifted sharply. In last month's survey, fewer than half of economists expected the Fed to raise rates in December; in this survey, all 100 respondents expected another rate hike by then.