CNBC’s “MoneyBeat” panel of market analysts and traders are divided on whether the Federal Reserve’s latest interest rate hike could boost the stock market and the broader economy.
The panel’s latest analysis says the Fed could raise rates by as much as $1.00 per share in February.
The consensus among analysts and market strategists is that the central bank is likely to raise rates for the first time in five years and that it could hike by about 1 percent in March, the panel says.
In a separate report Thursday, the Commodity Futures Trading Commission (CFTC) also weighed in on the Fed rate hike and said it is still looking for a reason to increase the Fed.
The CFTC’s latest quarterly report says the agency “is still evaluating” the Fed decision to lift rates to $85 per-trillion by early March.
If the Fed does raise rates, the agency said it could add $1 trillion to the economy in the first six months of the year, adding $4.3 trillion to economic output and $2.1 trillion in economic activity.
The Fed’s first increase would be its biggest since 2008.
The commission’s statement is a continuation of a March report that found the central banking system could add an extra $2 trillion to U.S. economic output in the year ahead.
The agency also said it expects the unemployment rate to rise to 6.4 percent by the end of the quarter, up from 6.3 percent in the previous quarter.
The unemployment rate is an indicator of the extent of the labor market slack and is not a cause for raising interest rates.
The Fed’s rate hike would be the biggest rate increase since 2007, the last time the Fed raised rates.
In December, the Fed released its first rate hike in two years and a second increase in March.
The agency has been raising rates in response to the economic recovery and job growth.
In a recent letter to the U.N. and the U, the U-S.
Conference of Mayors urged the Fed to increase rates in March because the economy is recovering.
The Federal Reserve said it would not consider further rate hikes until it has “identified a sufficient increase in employment” and has a “reasonable probability” that the labor force will remain strong.
The bank said in its statement that the March rate hike was “an appropriate measure” of progress on the recovery.
Last month, the central banks rate hike of last year, which came after years of lackluster economic growth, helped push stock prices higher.
On Thursday, Wall Street was buoyed by a rebound in the Dow Jones Industrial Average (DJIA) after the Dow fell by almost 4,000 points.
Fed Chair Janet Yellen said in a statement that she had been confident about the Fed raising rates and was encouraged by the recovery in the labor markets.
She said that the recovery has been “solid and robust” and that the economy remains strong and well-positioned to continue to grow.