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Dealers see 20 percent chance Fed retreats after rate hike: survey

From reuters.com

U.S. primary dealers saw a 20 percent chance that the Federal Reserve would be forced to cut interest rates back down to near zero within two years of its planned policy tightening, according to a New York Fed survey done last month. The regular survey, meant to help U.S. central bankers prepare for their Jan. 27-28 policy-setting meeting, also found that economists at the top banks still expect the Fed to raise rates in June, based on the median response. A policy meeting set for September was seen as the next likely timing for a tightening. If the Fed were to raise rates then retreat to near zero, the dealers cited ... (full story)

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