A Reuters survey found 94 of 100 economists expect the Fed to hold the federal government
funds rate at 3.75%-4.00% at the October meeting, and all 100 respondents expect
a rate increase in December, versus fewer than half who expected a December hike
in last month’s poll. Economists noted persistent inflation but said
policymakers have signaled patience. Mizuho senior US economist Alex Pelle said
the economy is strong and inflation is rising, called skipping October a policy
mistake, and forecast the Fed will lift rates in December—likely 25bps but
potentially 50bps rather than no hike.
