EFTA Document EFTA01459587

15 January 2016 Global Economic Perspectives: China's evolving FX policy Central Bank Watch liS We expect the pace of rate hikes to proceed initially at a gradual pace, with the Fed raising rates three times in 2016. The pace of hikes should pick up in 2017 as inflation pressures begin to build. We expect the Fed to maintain its reinvestment policy through this year, keeping their balance sheet stable. van The tightening labor market appears to be feeding into rising "core core" inflat