Survey of primary dealers shows first Fed hike in June 2015

The New York Fed released a survey of primary dealers asking when the Federal Reserve will begin hiking interest rates. Liftoff is seen in June 2015.

One part of the debate that’s obscured is the nature of the first hike. The Fed funds rate is currently in a range of 0% to 0.25% rather than a target. Is switching to a hard target at 0.25% really a rate hike? It is but not quite in the traditional sense.

Others might not consider it a true rate hike until the Fed gets to 0.50%.

That’s something to keep in mind as the debate evolves.