Economics
Bond Traders' March Fed Guide: Beware the Four-Hike Hype So Soon
- Momentum to raise ‘dot plot’ median seen fading after data
- Yet most scenarios see curve flattening as short-end pressured
4 Fed Hikes in 2018, None in 2019 Says Prestige's Schenker
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For a Federal Reserve meeting at which an interest-rate hike is virtually guaranteed, the decision still holds plenty of market-moving potential for bond traders.
That’s because new Federal Reserve Chairman Jerome Powell gave markets the impression last month that he’s open to tightening four times in 2018, rather than the three currently reflected in policy makers’ “dot plot” projections. Officials will update those forecasts this week, and Powell will hold a press conference, after his February signals encouraged a fresh round of U.S. yield-curve flattening.