“The Federal Reserve will execute a gentle, staged exit strategy that won’t begin until the end of this year at the earliest and will put the Fed Funds rate just 50 basis points higher 13 months from now, according to the latest CNBC Fed Survey.
The 62 participants in the survey actually lowered their outlook for the Funds rate in June 2012 to an average of 75 basis points, down from 90 basis points in the April survey.
Even in December 2012, the Funds rate only rises to an average of 1.37 percent, compared with 1.67 percent in the April survey.
Respondents, who include economists, fund managers and strategists, also cut their outlook for growth and the level of the S&P 500. They now see growth of just 2.77 percent this year, compared with a 3.07 percent forecast in April. The S&P is seen hitting 1367 in December, about 2.7 percent lower than the prior forecast.”