Wall Street's top banks expect just two rate hikes from the Federal Reserve this year and see only modest risk to the U.S. central bank being pressed into a more aggressive pace of monetary policy tightening, a Reuters poll showed on Friday. The poll of primary dealers – the 23 banks that do business directly with the Fed – indicated none expect the next rate hike to occur before the second quarter, despite a report on Friday that employers added far more workers than expected in January. While the Bureau of Labor Statistics monthly non-farm payrolls report showed employment growth continues to be healthy, wages are not keeping pace, leading many to predict the Fed will stick to a leisurely pace of rate hikes.
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Wall Street stands with two Fed-hike outlook for 2017: Reuters poll