Reuters reporting on their poll of primary dealers
15 of 21 responses expect at least 3 rate hikes by the end of 2016
This contrasts with market pricing, where only one is expected by end year. And current Federal Reserve projections of 4 (the projections released in December, there were no updates to economic forecast issued today at the conclusion of the FOMC meeting)
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Primary dealers serve as trading counterparties of the New York Fed in its implementation of monetary policy. Primary Dealer are obliged to:
- participate consistently in open market operations
- provide the New York Fed's trading desk with market information and analysis re monetary policy formulation and implementation
- To participate in all auctions of U.S. government debt
- To make markets for the New York Fed when it transacts on behalf of its foreign official account-holders
There are 22 Primary Dealers
