The middle of the 2020 dot plot has the Fed funds rate between 3.25% and 3.5%. The Fed sees 2 to 3 more hikes than the market.
The first few rate hikes were interesting because financial conditions eased even though you’d expect rate hikes to tighten conditions. That’s because conditions were tight in early 2016 as the economy fell into a sharp slowdown which was almost a recession. Now the hikes are finally making their mark as the financial conditions index is getting tighter.
Submitted November 28, 2018 at 12:43AM by AlexPitti https://ift.tt/2DZB88b
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