In our view, the jobs report for February was solid and in line with expectations after the strong ADP jobs report released on Wednesday.
The jobs report removes the last obstacle for a Fed hike on Wednesday, in our view, in line with the message Fed Chair Yellen sent in her speech on Friday 3 March.
We expect the Fed to maintain the 'dot' signal for this year unchanged at three hikes in the updated projections.
We expect the Fed will hike three times this year, in March, July and December.
Markets have fully priced in the Fed hike next week, but note that markets price a 50% probability of the next hike in June (corresponding to a hike pace of every other meeting).
To read the entire report Please click on the pdf File Below