Survey Finds Sharp Shift in Outlook for Fed October Hold December Hike

Nearly all economists surveyed by Reuters expect the Federal Reserve to hold its benchmark rate at 3.75% to 4.00% at its late-October meeting, then raise it in December as inflation remains stubborn. The outlook marks a sharp shift from the previous poll, when fewer than half expected a December increase, and follows the Fed’s September rate hike. Fed officials have signaled they want more time to assess the economy, while economists are divided over whether delaying another increase is the right response to persistent inflation. President Donald Trump has urged the Fed to cut rates, while Chair Kevin Warsh has stressed that inflation remains too high and defended the central bank’s independence.