HSBC now sees three Fed hikes in 2017 and one more in 2018
Economists at HSBC raised their interest rate forecasts for the US, bringing them more in-line with the consensus view - up to a point.
The broker now expects the US Federal Reserve will raise rates twice more in 2017, in June and September, and again in the first quarter of 2018.
However, they then expect rate-setters in the States will keep the Fed funds rate at 1.625%, versus between 0.75% to 1.0% at present.
Previously, HSBC had only anticipated one 25 basis point rate hike from the Fed in 2017.
HSBC's James Pomeroy referenced the "change in sentiment" among the members of the Federal Open Market Committee for his revised forecasts.
Pomeroy's change of tack followed a sharp rise in market expectations for policy tightening in the US after Donald Trump's election victory, partly on the back of promises for greater infrastructure spending and tax cuts.
Until Trump's victory, HSBC's original for one rate hike from the Fed in 2017 had been the expectation of many economists.
The economist's fresh 2017 forecasts also brought him into line with the median projection from the FOMC's members as included in the Summary of Economic Projections released on 15 March.
Nevertheless, the SEP also foresaw three interest rate hikes in 2018 (again, like many economists after Trump's election win) versus HSBC's one.
Also worth noting, whereas as many market watchers had lifted their forecasts for Fed tightening following Trump's promise of greater fiscal stimulus, in recent speeches several of the Fed's top officials had indicated that they had not factored in higher government spending into their forecasts.
As of 1638 GMT fed funds futures were pricing in a 96.1% probability that the target range for the Fed funds rate would be at between 1.50% and 1.75% by the time of the 31 January FOMC meeting.