US economy to grow faster, but cautious on the dollar in 2017 - Nomura

Analysts at Nomura expect US GDP to be 0.6pp higher than the 2.2% of 2016 and inflation is expected to pick up 1pp.

Key Quotes

“This would justify two Fed hikes in 2017 (beyond December’s hike). Our US economists agree with the two Fed hikes, but actually expect growth to be a more modest 2.0% in 2017. Despite these Fed hikes, current consensus remains cautious on the dollar: it expects moderate dollar weakness (which could be due to 2017 forecasts not being revised postTrump). On rates, analysts only expect a small rise to just over 2.5%.”