A Reuters poll has found a slim majority of economists believe the Federal Reserve will not hike the Fed funds rate until the end of June 2015. The funds rate is currently 0-0.25 percent, and 33 of 69 economists polled by Reuters said this was likely to rise by the end of June next year. Thirty-one expect the funds rate to rise in the second half of 2015, while five predicted the first hike wouldn't happen until early 2016.
The survey comes on the heels of the release of the FOMC minutes. The minutes show the Federal Open Market Committee again wound back the pace of its MBS purchases from $30 billion per month to $25 billion per month, and eased its holdings of Treasury securities from $35 billion per month to $30 billion per month. The Fed made the decision in light of "cumulative progress toward maximum employment" and an improvement in the labor market outlook.
The Fed is unlikely to raise its key interest rate until July of next year, a survey has predicted.