Reuters survey: Nearly all economists expect the Federal Reserve to skip October and raise rates in December.

On October 20, nearly all economists polled by Reuters predict that the Federal Reserve will pause rate hikes this month and act again in December. Despite stubborn inflation calling for a more aggressive response, policymakers continue to signal patience. In the survey, the vast majority of economists (94 out of 100) expect the Fed to hold the federal funds rate in the 3.75% to 4.00% range at its October meeting, while all 100 respondents anticipate a rate increase in December, a stark contrast to fewer than half expressing this expectation in last month's poll.

Alex Pelle, senior U.S. economist at Mizuho Bank, stated, "The economy is strong and inflation is climbing. There is actually no need to be overly concerned about rate hikes, as raising them is practically the most straightforward decision. Regrettably, the Federal Reserve has not truly gotten a firm handle on the situation; they are merely treading water and may even be falling slightly behind."

Pelle added, "From a policy perspective, their decision to hold off on rate hikes in October is mistaken. They will raise rates by 25 basis points in December, though it is more probable that they will ultimately hike by 50 basis points rather than refrain from raising rates entirely."