Three Fed rate hikes seen in 2018 – Bloomberg Survey

According to the results of Bloomberg survey, a majority of the economists see the Fed raising the interest rates three times next year.

Key Findings:

Three rate hikes seen in 2018: March, September, December.

Fed's growth forecast likely to be revised to 2.3% from 2.1% than in September's meeting projections.

The revision in forecast comes from the new tax plan and faster global growth.

63% of respondents say risks to monetary policy is to the upside.

90% of respondents expect future path of interest rates over the next 2 years to be "about the same" under Powell, as compared to Yellen.

45% said an external economic/financial shock would present the greatest risk to markets in 2018.

39 of 41 respondents expect 2018 inflation to run around 1.9% based on the core PCE inflation reading, while expecting the GDP growth to come in around 2.3% next year.