Market’s Tail Wagging Fed’s Dog Over Rate Hikes

Maybe the Federal Reserve should shift its approach to offer less transparency because right now it is being controlled by the market, said Tom Siomades, head of Hartford Funds Investment Consulting Group (HIG). 'The market is taking the initiative away from the Fed and we have a scenario where the Fed tends to want to be proactive, but they are not,' said Siomades. 'That is frustrating because the market continues to dictate the pace or expectations that they are looking for from the Fed.' According to Siomades, the Fed’s stated intention to hike rates four times this year is not congruent with the market’s expectations of no increases in 2016. Siomades said the Fed has already backed away from a hard number, its unemployment target, so perhaps it’s time to draw a line in the sand again.