Too soon to assume Fed will repeat 2016 climb-down

There is a clear possibility that, as in early 2016, slowing global growth and further weakness in financial markets will prompt the Fed to abandon its plans to continue hiking interest rates. With the latest data suggesting that the domestic economy is in much stronger shape than it was back then, however, we still expect the Fed to hike rates up to two more times this year, before reversing course in 2020.