/ FED: Nomura have changed their Fed call...>

US VIEW: / FED: Nomura have changed their Fed call and now expect three rate

hikes in 2018 following the one expected in December, and then a further one in

2019. This compares to MNI PINCH seeing markets pricing just 39bps of rate

hikes. 

- Nomura see the FOMC rising rates in March, June, and December and one more

hike in June 2019.

- "This pace of hikes is in line with the current median of FOMC forecasts

through mid-2019. That said, we do not expect FOMC to raise its range for the

federal funds rate above 2.25-2.5%" Nomura says and add that they think this

would still be a small overshoot relative to the long- term level of the

"neutral" rate.

- Nomura also do not expect there to be any change to the current trajectory of

FOMC's balance sheet.