How many more FOMC rate hikes in 2018? Dealers say expect another 2

How many more FOMC rate hikes in 2018? Dealers say expect another 2


Following today’s Federal Open Market Committee announcement and associated press conference, this from primary dealers

Reuters polled the dealers:

  • Most see 2 more hikes in 2018
  • Median view is for 3 hikes in the following year

Reuters  add: 

  • With Federal Reserve Chairman Jerome Powell lauding an economy that he sees doing “very well,” members of the Federal Open Market Committee also ratcheted up the number of rate increases they expect this year by one from their previous projections. 
  • Opinion was more divided about 2019’s increases, however, although the median outcome was in line with the Fed’s own forecasts for three hikes. Five dealers saw three increases, and another five estimated four hikes, while six projected the Fed lifting rates just twice next year. One respondent – BNP Paribas – forecast only one hike in 2019.  

Primary dealers are the 23 large banks authorized to transact directly with the Fed



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