It’s all eyes on the Federal Reserve for investors this week, ahead of the central bank’s last FOMC meeting of 2015, and CFOs have largely come around to the market view that the Fed will raise rates for the first time since the financial crisis. Over 90 percent of CNBC Global CFO Council members predict that this week’s meeting will produce a Fed interest-rate hike (compared to 28 percent in a September poll).
The CME Group FedWatch is showing the implied probability of a rate raise at more than 80 percent.
In addition to predicting the Fed’s first interest-rate raise since 2006, an overwhelming majority of surveyed CFO Council members — representing more than $2 trillion in market capitalization — think at least two or more rate hikes will take place in 2016.
