The Federal Reserve is set to follow a much-anticipated interest rate rise this week with two to four more increases next year, leading economists say.
Markets are bracing themselves for the first US rate rise in almost 10 years on Wednesday. A Financial Times poll of 51 top economists highlights the stakes as any increase would have profound consequences for the world economy, particularly emerging markets.
While the Fed’s previous September forecasts pointed to four rises of a cumulative 100 basis points next year, markets have priced in a more gradual tightening process, because of doubts over the US economy’s capacity to weather tighter monetary policy and potential turbulence abroad.