When it comes to timing the Federal Reserve's first interest-rate increase since 2006, economists are beginning to see things the way bond traders do.
Deutsche Bank and BNP Paribas have pushed back their forecasts for the policy rate move until March, matching levels projected by interest-rate swaps. Treasuries have returned 2.2 percent since midyear amid a slowdown in the economy and inflation. The Fed has kept its target for the benchmark federal funds rate near zero since 2008.
The two banks join Barclays and Toronto-Dominion Bank in expecting the Fed to prolong its wait after recent data indicating continuing sluggish economic growth. All four banks are among the 22 primary dealers that trade with the Fed.
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