Brian Chappatta, Columnist

Fed's Rate-Hike Path Should Remain a Close Call

Bond traders are giving the central bank flexibility. Officials would be wise to hold onto that.

June 13, 2018 at 11:00 AM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Steady as she goes.
Photographer: Carl de Souza/AFP/Getty Images

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For bond traders, so much depends upon a single Federal Reserve voter.

With policy makers prepared to deliver a well-telegraphed interest-rate increase, the market’s focus is on the “dot plot,” which shows central bankers’ outlook for future hikes. In March, the group was evenly split between three and four moves in 2018. That means if just one voting member shifts to a quicker pace, the committee’s entire median will adjust.