The market and the Fed are not in sync right now

In the Fidelity Insight of the week, Business Insider executive editor Sara Silverstein speaks to Ford O'Neil, a fixed-income fund manager at the firm. He says that the markets and the Fed are in agreement for this year, but have diverging outlooks for 2018, with the Fed signaling more rate hikes than the market expects. O'Neil says he sides with the Fed, citing synchronous global growth that could boost inflation. He says that there will be more pressure on the front end of the yield curve if there are three hikes. In particular, O'Neil thinks that there will be wage pressures next year as unemployment falls below 4%, which will push inflation higher.