Will the Fed Raise Rates? Economists Are Split Down the Middle

As hectic global markets continue to run wild, one question lingers: Will the Fed raise interest rates this month? According to a survey of 54 economists, those polled are nearly split down the middle, as 48% expect a jump this month, which would be the first since 2006. While Fed Vice Chairman Stanley Fischer (pictured) is confident inflation will rise, some economists, such as Goldman Sachs chief economist Jan Hatzius, believe that raised rates can startle jumpy markets and slow recovery in the wake of the Dow’s record fall last week. Economists don't see a bubble bursting anytime soon—at least not in commercial real estate—meaning there won't be any steep cost if the Fed decides to delay until December. But those who predict a September rate jump believe the US economy is strong enough to correct itself, even with a sluggish China market. Most agreed, however, that inflation will remain below the Fed’s 2% target. Any rate hike solely depends on the market’s stability and unemployment rates going forward, Moody’s Analytics chief economist Mark Zandi says. [Bloomberg]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Spirit Christmas Unveils Plans To Grow Store Count This Holiday Season

Hurricane Isaias Puts More Than $40B In Multifamily Property In Its Path

Braemar Inches Closer To Ashford Breakup With $372M Hotel Sale

Transformers: Yet Another Data Center Power Infrastructure Supply Chain Bottleneck

Proposed EPA Rule Change Could Cut Months From Timelines Of Projects Near Wetlands

Rates, Rents And AI Risks: Peter Linneman's Warning For CRE

Heitman, Andover Target Self-Storage With New Investment JV

U.S. Multifamily Market Regaining Its Balance As Yearslong Supply Wave Tapers Off

Clarion Hires Prologis Executive To Lead Power Strategy

Why Data Centers Need To Embrace 'Responsible Resiliency'

The Bridge-To-Bridge Bet Is Holding Off CRE's 'Day Of Reckoning' — For Now

Augmentation, Not Replacement: How AI Platforms Are Streamlining Front Desk Teams