Quotes from Wells Fargo Securities:
-Market expectations for the pace of the fed funds rate remains out of sync with the median FOMC expectation. In general, market participants suspect that the Fed will move later and slower than has been indicated from the FOMC meetings. Such a divergence in expectations is not unprecedented.
-A similar story emerged between 2004 and 2006, when the market mistakenly expected the Fed to raise rates at a slower pace than it actually did. Our own projections are more in line with those of the FOMC, and we expect the first rate hike to come at the June meeting, with the fed funds rate ending 2015 at 1.0 percent and 2016 at 2.75 percent.
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