Fed to raise interest rates once more

The U.S. Federal Reserve will remain patient for a little longer than thought last month, waiting until the third quarter before raising rates once more, and then stay on the sidelines, a Reuters poll of economists showed.

With growth due to slow over the next three years and the Fed’s preferred measure of inflation not expected to show any significant pick up, an increasing number of economists have turned dovish on the U.S. interest rate outlook.

U.S. gross domestic product is forecast to expand at an annualized rate of 1.6 percent this quarter, down from the 2.6 percent in the previous quarter and a cut from 1.9 percent predicted last month.

The median probability of a U.S. recession in the next 12 months held stable compared with February at 25 percent, with the chances of a recession in the next two years steady at 40 percent.

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