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Congressional Budget Wonks to Fed: You Probably Aren't Going to Raise Rates as Fast as You Say

CBO doesn't see Fed rate increase next month, projects slower pace thereafter

Not even the U.S. Congressional Budget Office is buying the Federal Reserve's projected path for interest rates in coming years, starting with some central bankers' insistence that a hike next month is possible.

In the latest update of its budget and economic outlook released on Tuesday, the CBO said it expects the central bank to hold its target for the federal funds rate at 0.25 to 0.5 percent until the fourth quarter of this year before raising it.