Morgan Stanley Drops A Bomb, Says Fed Silence Speaks Volumes

On Wednesday evening, Morgan Stanley's Ellen Zentner wrote 'by letting market expectations ride, the Fed is effectively saying it doesn't think the market has it wrong."

Zentner believes the Fed lack of clarity on a March rate hike signals the Fed avoided shutting the door on a March rate hike and also signaled the Committee may believe the market's low-probability expectations are right.

Zentner reiterates the view that Fed forecasts for GDP are too high and will need to readjust lower.