Austin American-Statesman

Economy:

Economists in survey also expect faster growth for 2015.

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A survey of economists finds that a majority expect the Federal Reserve to raise interest rates by year’s end.

NEW YORK — A survey of business economists finds that a majority still expect the Federal Reserve to raise interest rates before the end of the year, with the broader economy expected to grow at a slightly faster pace in 2015 than earlier forecasts.

Economists now expect the gross domestic product, adjusted for inflation, to rise 2.5 percent for the year, according to the survey by the National Associatio­n for Business Economics. That’s up from the previous forecast of 2.4 percent in June.

The uptick is the result of a stronger-than-expected growth in the first half of the year, however. For the remainder of the year, economists lowered their forecast.

For 2016, the economists also lowered their forecast to growth of 2.7 percent, down from their prediction of 2.9 percent growth in June. The survey was based on forecasts by 50 economists and was conducted Sept. 16 to 23.

Panelists continue to expect the strong U.S. dollar and the

economic slowdown in China to weigh on the U.S. economy, while lower crude oil prices and monetary policy easing in Japan and Europe are expected to help.

Meanwhile, 14 percent of the panelists said they think the Federal Reserve will begin a cycle of shortterm interest rate increases starting at its October policy meeting. Another 65 percent expect a hike at the December meeting. Sixteen percent expect a hike in the first half of next year, and 2 percent predict a hike in 2017 or later.

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