Fed Will Raise Rates Faster Than Investors Bet, Survey Shows

The Federal Reserve will probably raise its benchmark interest rate faster than money-market investors expect, according to a majority of economists surveyed by Bloomberg News.

Eurodollar futures, the world’s most actively traded short-term interest-rate contract, are underestimating the pace of tightening over the next two years, according to 55 percent of economists in the June 12-16 survey, which drew 56 responses on the question. Fed officials begin a two-day meeting today in Washington.