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Fed to hike more than expected, but global fallout to be limited

While the FOMC meeting will surely conclude today with no change in policy, we continue to expect US interest rates to be raised more than the markets anticipate in 2016 and beyond. Nonetheless, this prospect should not be as alarming as it sounds, both because it depends on global economic and market conditions improving, and because policy elsewhere is still likely to be loosened further.

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