File - The U.S. Federal Reserve building, Aug. 9, 2011. AFP/Karen Bleier
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There is a big disconnect between the U.S. Federal Reserve and the international bond markets.U.S. central bank policymakers expect the main Fed funds rate to rise from near 0 today to 1.25 percent by the end of next year, with the first rate rise penciled in for next June. By the end of 2016, the Fed's policymakers forecast rates at 2.75 percent, while the market has them at 1.50 percent. By the end of 2017, Fed policymakers expect rates to be 3.75 percent compared with market forecasts of 2.0 percent.
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