SURVEY: Majority Of Financial Professionals Think The Fed Will Raise Rates By 2013

This post originally appeared at CNBC.

The Federal Reserve has a growing credibility problem with markets when it comes to monetary policy.

In its statement last week, the Fed said economic conditions are “likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

The March CNBC Fed Survey, however, finds that nine out of 10 market participants don’t believe the Fed will wait that long. In fact, 54 per cent believe the first Fed interest rate hike will come by 2013.

“There is no way the Fed will fulfil its pledge of keeping rates at present levels until 2014,” wrote Rob Morgan of Fulcrum Securities in response to the survey. “I’m shocked that some market watchers are still talking about another round of quantitative easing… The big risk for the Fed is falling behind the inflation curve.”

“I’m shocked that some market watchers are still talking about another round of quantitative easing… The big risk for the Fed is falling behind the inflation curve.” – Rob Morgan, Fulcrum Securities

The survey, which includes responses from 67 economists and equity and fixed income managers, shows disagreements with the Fed beyond just the date of the first rate hike.

Read the rest of the story at CNBC >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.