The U.S. Federal Reserve will unveil the timing of its balance sheet unwind in September and wait until December to raise interest rates again, according to a Bloomberg survey of 41 economists.
Results of the survey, conducted July 18-20, showed economists are growing increasingly concerned over the recent slowing of inflation, compared with a similar questionnaire in June. Nonetheless, two-thirds of respondents said Fed officials wouldn’t change the language of their next policy statement to highlight their growing worries. The Federal Open Market Committee meets July 25-26 in Washington.
“While the soft inflation data has raised some concerns on this front, this is largely temporary,” Parul Jain, chief investment strategist at Macrofin Analytics LLC in Wayne, New Jersey, said in comments attached to her survey response.
Reflecting on sliding inflation figures, Fed Chair Janet Yellen told lawmakers on July 13 that inflation risks were “two-sided,” dismissing some of the softness