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Fed Watch: 3 hikes in 2018 dots
The Fed hiked rates by 25 bp to 1.5-1.75% as universally expected. In the accompanying statement, the FOMC said that the economic outlook has strengthened in recent months, but also that inflation will be watched closely. Against this background, further gradual rate hikes are likely to be warranted. Tailwinds for dots, but not enough for four rate hikes this year The dot plot did show tailwinds for dots, but not enough to lift the median for 2018 to four rate hikes as we had expected. 5 FOMC members expect four rate hikes to be appropriate and 5 FOMC members expect three rate hikes, but the median remains at the ... (full story)