Back in December, the overoptimistic Fed predicted 4 rate hikes in 2016. Just a few weeks later, the Fed Funds futures said “no way”, when markets crashed, and said the Fed was dead wrong, expecting zero rate hikes in 2016. Since then the market has picked up modestly and now expects at least one more rate hike in 2016. So what does the Fed say now?
Well, as a result of another cut to the economic forecast, one which now sees 2016 GDP at 2.2% vs 2.4% previously, and a drop in inflation from 1.2-1.7% to 1.0-1.6%…