Fed Versus The Market – Round 2
In its September 20 policy statement, the Federal Reserve (Fed) suggested that it will increase interest rates once more this year and three times in 2018. But the market is predicting that the Fed will only raise rates two times between now and the end of 2018—and it isn’t even certain that the Fed will raise rates this December, though according to fed fund futures it is likely. One reason for this skepticism is the Fed’s history of being overly aggressive in estimating its own future actions.
