Big disconnect in rate expectations. Are we missing something?

If we compare the current eurodollar futures curve versus the summary of economic projections developed by the Fed, there is a big disconnect.  The median of the SEP is significantly higher than what is seen in the Eurodollar futures market. This disconnect has existed for some time, but now we are approaching what will be the first move by the Fed so differences in expectations will have real consequences.  (Chart presented by Morgan Stanley.)

If you believe the SEP and you use the Fed funds futures as a forecast for when the first rate more will come, the rate increases are going to be come very frequently in the second half of the year. The chance of rate increase moves to over 50% for the June FOMC meeting. If you follow the SEP, there will have to be increases at each remaining FOMC meeting until the end of the year. 

There is going to be more focus on this issue because it is telling us that whatever Fed forward guidance being received by the market, the market thinks rate hikes are going to be happen slowly.  Either the market has not received the right message or the Fed estimates of the expected rates are very different from what the Fed wants to tell the market. 

"What we have here is a failure to communicate!"  Or, a failure to listen. This does to seem to be the intent of the Fed with providing good transparency.