Most economists expect next Fed rates hike in December: survey

CGTN

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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.