- What happens to the dot plot?
- How will the market react to the Fed's message? Will the current market expectations of about two more rate hikes in 2017 change?
- How will Donald Trump react to the likely quarter-point rate hike?
The market reaction was understandably negative. Stock prices fell. Rates rose across the board, but the 2/10 yield curve steepened, which indicated market expectations of better growth.
Here is my perspective on the new dot plot and subsequent market reaction.
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