Investors are underpricing the possibility that the Federal Reserve will telegraph a higher peak rate with its new dot plot this week. The median of FOMC members’ indications will show an additional one or two hikes, while a couple of them may pencil in more tightening than that. Should the median show more than one increase, Treasuries are bound to sell off. The Fed will need to revise its dot plot to acknowledge that it isn’t done with its efforts to quell inflation that is still running well above its own estimates. Interest-rate traders aren’t quite positioned for the Fed to keep tightening, with meeting-dated ... (full story)