With the labour market still evidently on fire in February, we expect the FOMC statement next Wednesday to omit the language that the Fed can be "patient" in beginning to normalise monetary policy. Even with headline inflation below zero, we then anticipate a first hike in June, with the FOMC pushing the target range for the fed funds rate to 1.00-1.25% by the end of this year and 2.75-3.00% by end-2016, implying mid-points of just over 1% and almost 3% respectively.
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