Reuters survey: 100 economists all expect the Federal Reserve to raise interest rates again in December

A recent Reuters survey shows that the market's judgment on the Federal Reserve's interest rate outlook is changing. The expectation for an interest rate hike in October has cooled, but the surveyed economists collectively expect the Federal Reserve to raise rates again in December.

In the survey conducted from October 16 to 20, 94 economists expect the Federal Reserve to maintain the federal funds rate in the range of 3.75% to 4.00% at the meeting on October 27 to 28. This judgment is consistent with the expectations reflected in market pricing, and this meeting is just days before the U.S. midterm elections in November.

The interest rate expectations for December have shifted. In last month's survey, less than half of the economists expected the Federal Reserve to raise rates in December; in this survey, all 100 respondents expect a rate hike at that time.