Investors have been getting it all wrong on the of the Fed Funds rate for years. They have forecast higher rates year after year. Some years ago I blogged What is the point of economists despairing at their consistency in getting it wrong. But not now. There is still some difference on the longer term hike trajectory (yellow and red line) but the point being, for once they are hiking. There was a notable shift in language towards asset price inflation (from May last year) and, provided we do not see a significant sell-off in risk assets, the Fed would likely keep hiking.