Markets aren't priced for enough Fed rate hikes - BAML

Comments from Bank of America Merrill Lynch's co-head of Asia FX, Adarsh Sinha provided his comments on the market and how he believes that markets haven't appropriately priced in extra rate hikes this year, with the Fed on pace to bring the number of hikes this year from three to four.

Key quotes

Market isn't pricing in enough US rate hikes.

This may change after Fed meeting this week or next month at the latest.

2019 pricing is for two hikes even though Fed is saying three.

2020 pricing in zero hikes even though Fed is saying at least once.

There's a risk Fed may sound more hawkish today. (FOMC meeting 18:00 GMT)

Inflation language may be upgraded after core PCE moved up.