Fed on hold in June, but one-third of economists expect another hike soon

The US Federal Reserve is not expected to raise rates at its June meeting, according to a Reuters poll, although a number of analysts expect at least one further increase this year. The poll saw 90% of the 86 economists surveyed predict that the federal funds rate will remain at 5.00% to 5.25%. A minority predict a further rise of 25 basis points to 5.25%-5.50%. However, over a third of respondents expect a rate hike later this year, including eight analysts who see one coming in July.