Fed looking all set to hike rates in March – BBH

Analysts at BBH suggest that the gains in the US dollar appear to be more a function of shifting expectations of Fed policy than new clarity on fiscal policy.  

Key Quotes

“By Bloomberg's calculation, there is now an 82% chance the Fed hikes in two weeks.  Our interpolation puts the odds at 74%.  New York Fed President Dudley's remark that an increase in rates has become "more compelling" was the catalyst.”

“Seven Fed officials are still set to speak this week.  Governor Brainard speaks after the US markets close today.  Although she is not part of the Fed's leadership core, her insight last year, and particularly the importance of the international settings, was important.  On Friday, both Fischer and Yellen speak.  Given the proximity of the March 15 FOMC meeting, it will be the last significant opportunity to try to shape market expectations.”