The latest CNBC Fed Survey shows Wall Street anticipating a more dovish Fed in April than it did back in March, with the next rate hike not expected until much later this year.
Fully 100 percent of the 48 respondents to the survey, including economists, strategists and fund managers, are sure the Fed won't hike at its meeting this week. But 94 percent say the next move will be to hike rates. The next hike, on average, isn't expected until August, two months later than anticipated in the previous survey. And respondents don't see rates taking off after that. They lowered their funds rate forecast for 2016 to just 0.78 percent, compared with the current target of 0.38 percent. The rate is seen remaining low in 2017 at just 1.4 percent, 17 basis points less than forecast in the March survey.
"The Fed should be cautious until the 2 percent price stability target clearly is in sight,'' Allen Sinai, chief global economist of Decision Economics, wrote in response to the survey.