Fed to Confront Skeptical Market View of Gradual Rate Hike Pace
- Investors see zero chance of a hike at the April 26-27 FOMC
- Fed has two rate hikes penciled in for 2016, market sees one
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The Federal Reserve’s dilemma next week is how to skip an interest-rate hike for a third straight meeting without cementing expectations that policy is on hold for months to come.
“The Fed doesn’t want to leave the impression that they will never hike rates,” said Thomas Costerg, senior economist at Standard Chartered Bank in New York.