News Briefs

The Financial Times reports that financial markets indicate a growing probability of four Fed rate hikes this year, a sharp divergence from the consensus at the beginning of the year. Investors say that the Fed will walk a fine line between tamping down inflationary pressures and not slowing down the U.S. economy. FT

James Mackintosh of the Wall Street Journal says that it is not yet time to worry about the flattening yield curve. Mackintosh attributes part of the flattening of the yield curve to the massive quantitative easing programs the Fed conducted in response to the last recession, arguing that low long-term yields are not yet signaling an impending recession. WSJ