Following yesterday's FOMC meeting, Goldman Sachs US Economics team changed its central expectation on the timing of the first hike, which it now expects in December. From there, they expect the FOMC to raise rates by 100bp per annum, with the Fed Funds target range reaching 1.25-1.50% at the end of 2016 and 2.25-2.50% at the end of 2017 – roughly half way between the dots and the forwards. "Strengthening economic data and rising asset prices will, in our view, lead the market to revise its pricing for the tightening cycle towards the FOMC median profile, i.e., re-building some risk premium," GS argues. As such, GS ... (full story)