US Fed to hike rates seven times in 2017-18, says Morgan Stanley

Later today, US Fed is widely expected to raise key rates by 25 basis points

Analysts at Morgan Stanley expect the US Federal Reserve (US Fed) to hike rates seven times in 2017–18, which is more hawkish than the five times priced in by the Fed Futures, writes Deyi Tan, an economist with Morgan Stanley in a co-authored report.

Co-incidentally, the US Fed at the end of its two-day meet later today, is widely expected to hike key rates by 25 basis points – the second time in three months – encouraged by strong economic data as represented by monthly job gains and the confidence that inflation is rising as per expectations. Most analysts and