Business Economists See Higher Rates This Year

Washington, DC, March 8, 2010--Business economists expect the Federal Reserve to raise benchmark interest rates within six months, according to a survey by the National Association of Business Economists.

A majority of economists in the semiannual survey said the Fed's current policy is appropriate.

However, a growing number, believe the Fed's policy's are too stimulative.

"A majority believes that a rise in interest rates is both likely and appropriate in the next several months," said NABE President Lynn Reaser.
    
Reports show the economy is recovering gradually, and some policy makers believe the Fed should begin to prepare markets for the beginning of the process of tightening financial conditions.

A significant minority, 44 percent, thought inadequate regulatory oversight was the primary contributor to the deep financial crisis that plunged the economy into a painful recession.

Almost 80 percent of the economists polled said the country's long-term budget deficit could hurt U.S. ability to borrow.