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Most economists expect next Fed rates hike in December: survey

Economy2017-08-11

Most American economists expect the Federal Reserve to raise interest rates once more in December and begin unwinding its 4.5 trillion US dollars balance sheet in September, according to a survey conducted by the Wall Street Journal on Thursday.Economists also expect the US central bank to raise interest rates three times in 2018, a view that matches the Fed's own projections. "Labor market strength and continued economic growth will keep the Fed on course with gradual rate hikes," said Scott Anderson, chief economist at Bank of the West.On Wednesday, Chicago Fed leader, Charles Evans said the central bank could hold off on raising rates at the September meeting and instead begin winding down its balance sheet.(Chicago Fed leader Charles Evans)In June, the Fed raised the benchmark interest rates for the fourth time since December 2015 and unveiled a plan to trim its holdings of US Treasury bonds and other mortgage-backed securities later this year.The Fed's balance sheet has ballooned to around 4.5 trillion US dollars following three rounds of quantitative easing programs to withstand the impact of the 2008 global financial crisis.

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Most American economists expect the Federal Reserve to raise interest rates once more in December and begin unwinding its 4.5 trillion US dollars balance sheet in September, according to a survey conducted by the Wall Street Journal on Thursday.

Economists also expect the US central bank to raise interest rates three times in 2018, a view that matches the Fed's own projections. "Labor market strength and continued economic growth will keep the Fed on course with gradual rate hikes," said Scott Anderson, chief economist at Bank of the West.

On Wednesday, Chicago Fed leader, Charles Evans said the central bank could hold off on raising rates at the September meeting and instead begin winding down its balance sheet.

(Chicago Fed leader Charles Evans)

In June, the Fed raised the benchmark interest rates for the fourth time since December 2015 and unveiled a plan to trim its holdings of US Treasury bonds and other mortgage-backed securities later this year.

The Fed's balance sheet has ballooned to around 4.5 trillion US dollars following three rounds of quantitative easing programs to withstand the impact of the 2008 global financial crisis.

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