“The Federal Reserve is widely expected to leave rates unchanged at its policy-setting meeting today, but low inflation and continued uncertainty about the recovery has economists pushing their forecasts for the eventual rate increase even further into the future.

In a midmonth addendum to the Wall Street Journal’s economic forecasting survey conducted this week, 15 of 44 responding economists moved their expectations for when the Fed will raise rates further into the future compared to their responses just three weeks ago. Only three respondents pulled their estimates back. On average, the economists don’t see the central bank changing rates until March 2011. Futures markets see a 45% chance that rates will remain in the current 0-0.25% range through March, up from just 23% last month.” Read more.

 

Phil Izzo

The Wall Street Journal, June 23, 2010.