September Fed Rate Rise Seen as Economists Shrug Off Yuan
China, Oil Give Fed Food for Thought on Rate Hikes
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Economists are standing by their projections for a September Federal Reserve interest-rate increase, despite a surprise devaluation in China’s currency that has heightened uncertainty in the international outlook.
Seventy-seven percent of forecasters in a Bloomberg survey taken Aug. 7-12 said that the Fed will raise its main policy rate next month for the first time since 2006, up from 76 percent in July. All respondents were given the opportunity to revise their forecasts following the yuan news.