The US economy is unlikely to fall back into recession and lower interest rates are not needed to foster its recovery, according to a survey of economists released today.
The survey of 193 economists by the National Association for Business Economics found that 69 per cent believe the odds of a so-called "double-dip" recession are under 50-50.
In a March survey, 76 per cent of the respondents viewed odds of a renewed recession as below even.
The latest survey, which comes a day before Federal Reserve officials meet to consider interest-rate policy, found 77 per cent of the economists think the current stance of monetary policy is about right.
In addition, it found that 50 per cent of the economists expected the Fed to hold its benchmark rate at the current 40-year low of 1.75 per cent over the next six months, while 31 per cent expected rate hikes and 18 per cent expected cuts.
The survey showed a marked shift from views held in March. At that time 66 per cent of respondents said they expected rates to rise in the coming six months.
But economic data since then have shown a spotty recovery and Federal Reserve Chairman Mr Alan Greenspan has made clear the central bank would wait for clearer signs the economy was on a sound footing before raising rates.