The market does not expect any rate hikes all the way through June of 2017, and in fact beyond. June of 2017 is the furthest CME Rate Hike Calculations go.

Let’s compare market expectations to a “Dot Plot” of Fed governor rate hike expectations.

Rate Hike Expectations for June 2017

Fedwatch 2016-07-07A

Dot Plot of Fed Hike Expectations

Fedwatch 2016-07-07b

Mike “Mish” Shedlock