Speaking to reporters
He adds:
- Concerned by disconnect between mkt and Fed's dot plot
- Says inflation expectations uncomfortably low
The market is not fully on board for the 2017 hike or the 2018 three hikes that the dot plot shows. What's new? Nothing.
The question is, does the Fed really believe it?
Seeing that most years they have high expectations, but act less than expected, it probably does not matter much. If the Fed were hiking at every meeting, that would be a problem but if they say 3 and only do 2 (or even 1) it probably does not matter much. IMO.
