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A ‘hockey stick’ hiking cycle likely from Fed over next two years

US Federal Reserve is likely to start monetary policy tightening in its upcoming meeting in December 2015, and therefore the central bank will have continued market attention in next year as well, as market would be observing on its pace after first hike.

"We expect a 'hockey stick' hiking cycle over the next two years with three hikes in 2016 and four hikes in 2017, i.e. with an increasing hiking pace", says Danske Bank in a research note. 

This is mainly because the central bank would like to monitor the first rate hike's impact on the real economy and financial conditions, before moving towards another hike, but it is likely to make next moves before the labor market tightens further.

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