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[marketmaven]

Lehman now sees more Fed rate hikes coming
By Rex Nutting
WASHINGTON (CBS.MW) -- Lehman Bros. economists now see the Federal Open Market Committee raising rates again in December and once more each quarter next year, two more rate hikes next year than they had been forecasting. Lehman also boosted its 2005 gross domestic product forecast by 0.2 percentage points to 3.5 percent. Lehman expects the yield on the 10-year Treasury to remain near 4.4 percent until June before rising to 5 percent by the end of 2005.