Report: Fed officials say rate rise expectations overplayed (by Steve Goldstein)

LONDON (MarketWatch) -- Some senior Fed officials believe rate rise expectations are overplayed, the Financial Times reported without attribution. The officials do agree that rates should move higher given the decline in the risk for a severe recession, stronger-than-forecast consumer spending and rising inflation expectations. But expectations for three of four rate hikes have developed over the last week, and these officials are not agreed that the Fed will tighten quickly and aggressively if inflation expectations don't rise further, the report said.