Investing.com - The majority of economists believe that the Federal Reserve will hike rates in March with a second move higher arriving in June, according to a survey released on Thursday.
A monthly Wall Street Journal survey of approximately 60 economists showed that 92.5% of them believe the Fed will hike rates at its March 28 decision. That compares with 73% priced in by the market, according to Investing.com’s Fed Rate Monitor Tool.
The survey also showed that these experts put odds of a second hike on June 13 at 65.2%; while Fed fund futures price in the move at only 53%.
The Fed's next two day meeting takes place on January 30-31 with markets not contemplating a move.
Beyond the Fed, WSJ also enquired whether shareholders or employees would benefit more from the recent cut in corporate taxes to 21% from the prior 35%. 74% of those polled believed that shareholders would reap more rewards while only 1.6% felt employees would come out on top. The remainder say both groups benefitting equally.
Additionally, economists were fairly upbeat on the American economy with 69% admitting that they believed the risks for their GDP growth forecast were to the upside, while only 25% felt the risk to the downside was greater.
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