Fed Dealer Survey Sees Rate Increase in Second Quarter 2014
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The Federal Reserve Bank of New York’s survey of primary dealers conducted before policy makers’ Dec. 13 meeting showed the firms expected the Fed to raise its benchmark interest rate during the second quarter of 2014.
Respondents saw a 45 percent chance the first rate increase would occur in the second quarter of 2014 or later, according to the results posted today on the New York Fed’s website. The median among the predictions for the timing of the first increase was the second quarter of 2014, the bank said in a statement. The Fed has kept its benchmark interest rate near zero since December 2008.