RTRS Poll of primary dealers: A majority see 2 more Fed rate hikes this year

According to a latest Reuters poll of the US 'Primary Dealers" banks that do business directly with the Federal Reserve (Fed), a majority of the banks see 2 more Fed rate hikes this year post-March FOMC.

Key findings from the poll:

Most US primary dealers see 2 more Fed rate hikes in 2017 and at least 3 in 2018

16 of 17 primary dealers expect federal funds target rate to rise to 1.25-1.50% by year end (vs. 0.75-1.00% now)

11 of 17 dealers see next Fed rate hike by end of Q2; 6 see next move by end of Q3

12 of 15 dealers see at least 3 hikes in 2018; 7 see 3 increases while 5 forecast 4 hikes

-8 of 15 dealers see the Fed announcing its balance sheet reduction plan later this year; 7 see it happening in 2018 or later

On near-term risks to the economy, 6 cite trade policy as greatest threat, 5 cite fiscal policy, 2 cite us dollar strength