Financial Times FT.com

Rate rise expectation overplayed, believe Fed officials

By Krishna Guha in Washington

Published: June 17 2008 03:00 | Last updated: June 17 2008 03:00

Financial markets are in danger of getting carried away with their expectations for Federal Reserve interest-rate increases, some senior Fed officials believe.

They do not dispute that the next move in US interest rates is very likely to be up. But they feel the market may be pricing in too much tightening too soon.

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