Fed to hike rates by 25bps - TDS

Analysts at TD expects the Fed to hike rates by 25bps at the March FOMC, in line with a nearly-universal consensus.

Key Quotes

“We look for changes in the statement to show an upgrade to the balance of risks and convey stronger conviction in the outlook. While markets have speculated about the risk of four 2018 hikes, we think the bar is too high to see a shift in the median 2018 dot but look for the 2019 dot to shift higher, signaling three hikes next year.”

“On the data front, existing home sales for February and the Q4 current account balance are both scheduled for release. The market expects home sales to rise 0.4% m/m to a 5.4m unit pace while the current account deficit is expected to widen to $125.0bn.”