FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman suggested that the consensus continues to be for the first Fed rate hike in Q3 next year.
"A CNBC poll conducted prior to the Jackson Hole gathering found that expectations had been pushed into July from August."
"In talking with clients, it seems that many are looking beyond the time of the first hike, and are thinking more about the terminal rate for Fed funds in the coming cycle. Many seemed to think that it may peak below CPI (~2.25%)."
"However, the CNBC poll found a consensus for a 3.16% peak in Q4 2017. This compares with a 5.25% peak in Fed funds in the last cycle (2004-2006)."