NEW YORK--(EON: Enhanced Online News)--As the Federal Reserve’s Open Market Committee (FOMC) meets, the February issue of Wolters Kluwer’s Blue Chip Financial Forecasts indicates that the consensus continues to expect at least two 25-basis-points interest rate increases in 2017.
“Almost 60% of the panelists expect the first rate hike to come at the June 13th-14th meeting.”
“After hiking rates only once in both 2015 and 2016, the FOMC is forecast to enact two to three 25-basis-point increases in 2017 and probably two to three more in 2018. A significant majority of our panelists also believe that the Fed will begin to shrink the size of its balance sheet by the end of 2018,” said Randell E. Moore, executive editor for Wolters Kluwer’s Blue Chip Financial Forecasts. “Almost 60% of the panelists expect the first rate hike to come at the June 13th-14th meeting.”
Other consensus findings and details from the Wolters Kluwer’s Blue Chip Financial Forecasts exclusive survey include:
- A lack of clarity on the Trump administration’s plans is creating uncertainty among the panelists about the economic outlook;
- Most notably on the policy front, 80% of panelists expect that a so-called “border adjustment” – which would effectively place a 20% tax on U.S. imports and generate billions in revenue – will not be part of any congressional package of tax reform legislation;
- The consensus forecast for Real GDP is forecast to grow, on average, 2.4% (seasonally adjusted annual rate), over the next six quarters. That would represent an improvement over the prior six-quarter average rate of 1.75%.
Wolters Kluwer’s Blue Chip Financial Forecasts highlights the prevailing opinion about the future direction and level of U.S. interest rates that is critical for profitable business management. The newsletter is created through a survey with participants from leading firms including Bank of America-Merrill Lynch, Goldman Sachs & Co., Swiss Re, Loomis, Sayles & Company, and J.P. Morgan. The survey compiles forecasts for the next six quarters for multiple variables not limited to the federal fund rate, prime rate, state and local bonds, home mortgage rate and consumer price index.
Wolters Kluwer’s Blue Chip Financial Forecasts is published monthly by Wolters Kluwer Legal & Regulatory U.S., a global leader in information services and solutions for legal professionals. For more information on Wolters Kluwer’s Blue Chip Financial Forecasts please visit, wolterskluwerlr.com/bluechip.
About Wolters Kluwer Legal & Regulatory U.S.
Wolters Kluwer Legal & Regulatory U.S. is a part of Wolters Kluwer N.V. (AEX: WKL) a global leader in professional information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
Wolters Kluwer reported 2015 annual revenues of €4.2 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.