A majority of Wall Street’s top bond firms see the Federal Reserve starting to raise interest rates by the second quarter of next year, showing slightly more aggressive expectations compared with a month ago, a Reuters survey showed on Friday.
Nine of 17 primary dealers, the banks that deal directly with the Fed, said the U.S. central bank’s first rate increase would occur in the second quarter of 2015, the survey found.
In a survey taken in early August, six of 19 dealers had expected such a move.
All but five of the 22 primary dealers participated in the latest survey.
The view that the Fed has accelerated its timeline for raising rates came even after Friday’s monthly employment report, which showed that U.S. employers hired the fewest number of workers in eight months in August and that more Americans gave up the hunt for jobs.
Nonfarm payrolls increased 142,000 last month, missing economists’ median expectation of a gain of 225,000, after expanding by 212,000 in July.