The market is coalescing around the idea the Federal Reserve will guide its benchmark interest rate higher two to three times next year, but one strategist thinks a single rate hike will suffice.
The reason: Sluggish economic momentum will cause the central bank to be less aggressive than even the Fed members themselves anticipate.
"The Fed right now, they tell us by the dot plot that they're at four. I think one is more likely than four," Lou Brien, strategist at DRW Trading Group, said, referring to the Fed's chart indicating its path of future rate hikes.
The central bank's policymaking committee raised its fed funds rate for the first time in more than nine years this month, lifting the benchmark rate by 25 basis points from nearly zero.