While many analysts are already looking ahead to the trajectory of U.S. monetary policy based of the Fed's planned interest rate hikes, they may want to slow down. MarketWatch staffer Satyajit Das explains why the Federal Reserve may proceed with more gradual rate hikes than most expected.
One of the factors that Das believes may slow down the process is that economic activity is patchy since the Fed accentuates the positive and ignores weakness:
The recovery in housing prices is reliant on low rates and faces structural problems. Rising prices have reduced affordability. High levels of student debt, limited job opportunities, the need for mobility, and a generational change in attitudes to borrowing may limit demand and reduce activity.
Click over to MarketWatch to learn about how the interest hikes may be more gradual than originally expected: