Have the markets misread the Fed?

Have the markets misread the Fed?

Have the markets misread the Fed? The markets have pretty much decided that the Fed won’t now raise interest rates in September but at least one financial organisation is sticking to the forecast. Citi says that the Fed has signalled concern over the risk of leaving interest rates low much longer. In a client note the bank’s economists wrote: “The increased prominence of financial stability considerations in the FOMC discussion is a very hawkish signal that markets apparently ignored with the release of the July minutes.”