Markets Misread Fed Signals on Future Rate Hikes, Analysts Say

Markets have misinterpreted recent Fed officials' comments about tighter financial conditions making more rate hikes unnecessary.

Barclays analyst Meghan Graper believes markets are in a "daily tug-of-war" with policymakers on future hikes.

Graper said recent strong economic data is a "dose of reality" that hikes may still be needed.

She believes markets read too much into Fedspeak implying higher rates have done the tightening work.

If the economy is fueling higher rates, the Fed may still need to hike more.