Economists see only slight impact from Fed bond trimming
{{#rendered}} {{/rendered}}Business economists believe that the Federal Reserve's long-awaited move to start reducing its massive bond holdings will push long-term bond rates up, but most think the impact will be fairly modest.
A National Association for Business Economics survey released Monday found that 41 percent of economists surveyed expected rates on the 10-year Treasury note will rise by just one-half percentage point or less.
About one-fourth saw an increase of three-fourths of a percentage point to a full percentage point in the 10-year note. Only 11 percent saw rates going up more than 1 percentage point over the extended period that the Fed is reducing its holdings.
{{#rendered}} {{/rendered}}The policy survey summarized the responses of 184 of the association's members surveyed from July 18 to Aug. 2.