Most Primary Dealers See 2 Fed Hikes This Year Starting in June
(Bloomberg) -- While most primary dealers are still expecting the Fed to next raise rates in June, at least four see a rate increase coming sooner.
- Fed fund futures show a 36% chance of a hike in March, ~60% by May and ~74% by June, according to data compiled by Bloomberg
- NOTE: Forecasts surveyed Feb. 22-23
- PRIMARY DEALER VIEWS
- BANK OF NOVA SCOTIA
- Expects next hike in June, followed by hikes in September and December
- BARCLAYS
- Expects next hike in September and 2 hikes in 2017
- BMO
- Expects next hike in June and sees 2 hikes in 2017, with second hike in December
- BNP PARIBAS
- Expects next hike in May and sees 3 moves in 2017; read more
- CANTOR FITZGERALD
- Expects next hike in June and sees 2 hikes in 2017, with another hike in December
- CITI
- Expects next hike in June and sees 2 hikes in 2017, with following hike in December
- CREDIT SUISSE
- Expects next hike in June and sees 2 hikes in 2017, with second move in December
- DAIWA
- Expects next hike in June and sees 3 hikes in 2017, with following hikes in September and December
- DEUTSCHE BANK
- Expects next hike in June and sees 2 hikes in 2017, with second move in September
- GOLDMAN SACHS
- Chance of a June hike at 40%, March 30% and May 20%; sees 3 hikes in 2017
- HSBC
- Expects next hike in June and sees 2 hikes in 2017, with following move in December
- JEFFERIES
- Expects next hike in March, though says it’s a close call between March and June
- JPMORGAN
- Expects next hike in May and sees 2 hikes in 2017, with second hike in September; read more
- MERRILL LYNCH
- Expects next hike in June and sees 2 hikes in 2017, with second move in December
- MIZUHO
- Expects next hike in May and sees 2 hikes in 2017, with following hike to come in 3Q
- MORGAN STANLEY
- Expects next hike in September and sees 2 hikes in 2017; read more
- NOMURA
- Expects next hike in June and sees 2 hikes in 2017; says there’s upside risk for 3 hikes in 2017
- RBC
- Expects next hike in June and sees 2 hikes in 2017, with second move in December
- RBS
- Expects next hike in June and sees 2 hikes in 2017, with second hike in December
- SOCIETE GENERALE
- Expects next hike in June and sees 2 hikes in 2017, with following hike in December
- TD SECURITIES
- Expects next hike in June and sees 2 hikes in 2017, with following move in December; says there’s upside risk for 3 hikes in 2017
- UBS
- Expects next hike in June and sees 2 hikes in 2017, with second hike in December
- WELLS FARGO
- Expects next hike in June and sees 2 hikes in 2017, with following hike in December
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