Many analysts predict that the Fed will not raise the federal funds rate, which is the overnight rate at which banks lend reserves to each other, until late next year.
The lowering of inflation expectations led some economists to predict that the Fed might wait even longer to start raising the benchmark fed funds rate, the rate at which banks lend to each other overnight.
Many economists predict that the Fed will cut rates early next year after six increases since mid-1999.
Some economists predict that the Fed will keep interest rates unchanged because the economy is showing signs of slowing.
Many other analysts predict that the Fed will either stick closely to its previous statements or change the language but not its message.
Though some economists still predict that the Fed will start to tighten monetary policy by this summer, most predict that rates will remain low through the end of this year.
Partly for this reason and partly because the housing and financial crises are still unresolved, many Wall Street economists predict that the Fed will keep interest rates at their present low level until next year.
Still, the job figures for June were enough to prompt Mr. Hatzius and other leading economists on Wall Street to predict that the Fed could announce a shift in policy in September, rather than waiting until December.
This lack of bite in monetary policy, even more than recent suggestions of some inflationary pressure in wages, has led many analysts to predict that the Fed will push up its target for short-term interest rates much further then the current 6percentt before the economy will slow to an acceptable pace.
The signs of a weakening recovery, including anemic second quarter growth and slowdowns in both the manufacturing and services sectors of the economy in July, have led several Wall Street firms to predict that the Fed will cut rates in the months ahead.
Economists predict that the Fed will again raise its benchmark overnight lending rate a quarter-point, to 4.75percentt.
