Why the Fed Might Raise Rates Four Times Next Year

The video discusses the Federal Reserve's hawkish projections for rate hikes, with four expected next year compared to the Fed's projection of three. The key factor influencing these projections is the inflation outlook. The market is hesitant to adjust its pricing until more signs of inflation are evident. The Fed is expected to signal three hikes in 2018, aligning closely with market expectations, though the market has priced in slightly less. The discussion also covers potential dissenters and the gap between market pricing and Fed expectations.

What is the significance of inflation in the context of the Fed's rate hike decisions?

What might cause dissent among analysts regarding the Fed's inflation outlook?