The Fed: Fed may again throw markets by doing what it says on rate hikes

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Federal Reserve Board Chairman Jerome Powell would tighten at a faster pace if inflation picks up in a meaningful way

The strong labor market gives ammunition to economists who think the Federal Reserve will raise interest rates more than the market expects.

Some economists, like Michael Gapen, chief U.S. economist at Barclays, think the Fed will raise short-term interest rates four times in 2019, bringing the benchmark fed funds rate to 3.25% to 3.5%.

At the moment, the market thinks the Fed has only two and a half moves priced, to 2.85%.

Economists and investors are pretty certain the Fed will hike rates in December.

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