Ex-Fed economist: Median rate forecast for 2017 probably won’t rise

According to Jonathan Wright, a former Fed economist and an economics professor at Johns Hopkins University, noted that a flurry of signals from the Fed policy makers in recent weeks about the likelihood of tightening in March was more about a shift in the timing than in the number of increases the FOMC is likely to approve this year, Bloomberg reports.

Wright added, “The data have been generally good over the last couple of months, but not in a way that materially changes the outlook on growth or inflation.”

According to the median estimate, the so-called “dot plot,” which displays individual rate forecasts of officials on the policy-setting Federal Open Market Committee, will probably continue to show three hikes this year as appropriate.

Markets are widely expecting the Fed to raise rates by 25 bps at its monetary policy decision due to be announced at 1800GMT on Wednesday, which will be followed by Fed Chair Janet Yellen’s press conference.