March Fed rate hike back on the table - HSBC

Analysts at HSBC in its latest report, brought a March Fed rate hike back on the table against its previous expectations of a June lift-off by the Fed.

The probability of a rate hike in March has gone up to nearly 90% from around 20% at the beginning of February. 

Key Quotes via Reuters:

"Raising the funds rate in March would drive home the point that the Committee really is aiming at two or three hikes. Moving early could put the FOMC in a better position later this year to set monetary policy appropriately if a fiscal stimulus program is actually enacted. This comes after the US Fed Chair signaled a March hike in Fed funds rate." 

"At the December FOMC meeting, it appeared that only a small majority of the voting members of the Committee were projecting three rate hikes for 2017. We think that is still the case. Moving the timing of the first rate hike to March does not mean that the policymakers are contemplating any more rate hikes this year than before."