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Navigating A "Structural Shift" In Markets | Joseph Wang & Martin Pelletier

Forward Guidance

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The Market Is Pricing in a 25% Chance That the Fed Hikes by 50 Basis Points Instead of 25

The market is pricing in a roughly quarter chance that at the March FOMC meeting, the Federal Reserve hikes by 50 basis points instead of 25. I think shifting again from 25 to 50 is probably not necessary and there's really no reason for that on an extra month or so. The Fed does think very slowly and very carefully after signaling very clearly in their last statement that they wanted to shift down to 25. More likely is that the dot plots for March will be higher than they were in December.

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