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⚡️Reuters poll: Fed December rate hike expectations firm, but the end point of the tightening cycle remains disputed

BlockBeats news, November 10, a Reuters poll shows that about 55% of surveyed economists, namely 56 out of 101, expect the December rate hike to mark the end of this tightening cycle, a proportion basically unchanged from last month.

But 45 economists still expect the Fed to raise rates at least twice more, including more than half of the surveyed primary dealers, consistent with expectations reflected in market pricing, and believe that the risks to the inflation outlook have not changed since the U.S. midterm elections. Changes in the political landscape are unlikely to quickly ease inflation pressure. Although the market hopes that the nearly 9-month-old Middle East conflict can be resolved, driving crude oil futures prices down more than 22% from their highs in late October, inflation pressure still exists. A strong job market, resilient economic growth, and inflation remaining above the Fed's 2% target for nearly 6 years all indicate that further tightening of monetary policy is still necessary.

Wells Fargo Chief Economist Tom Porcelli said: "The Fed's decision depends on upcoming inflation data, and these data will prompt it to raise rates again. In fact, the Fed has every reason to raise rates at the October meeting."

Original link https://m.theblockbeats.info/flash/376589