Fed rate hikes no longer believable

The latest bout of market turmoil is denting investor confidence in how aggressively the Federal Reserve will tighten policy this year.
 Activity in options on eurodollar futures shows traders are starting to unwind bets that the central bank will hike four times in 2018. The evaporation of that wager, which implied one more increase this year than indicated in officials’ quarterly projections, is also apparent in rallying fed funds futures.

The Fed, instead will be dealing with the Italian fallout; from California to Iran.  We are getting a deflationary effect and the Fed has no idea and will follow the market.