In their latest report, BBVA Compass economists lay out case for three rate hikes in 2017

- They anticipate Fed will raise benchmark rate Wednesday, two more times in '17

- They walk through factors that will slow down, speed up pace of rate hikes

March 13, 2017

HOUSTON, March 13, 2017 /PRNewswire/ -- BBVA Compass economists lay out their reasons for raising their estimate to three rate hikes in 2017 in their latest Fed Watch report, pointing to the underlying strength of the economy and a series of hawkish speeches by key Federal Open Market Committee members.

"We now expect the Fed to raise interest rates by 25bp at its March meeting," writes BBVA Compass Senior Economist Boyd Nash-Stacey. "... Assuming risks remain balanced, financial vulnerabilities and geopolitical risks are contained, we expect two additional rate increases in 2017."

Nash-Stacey walks through the current unemployment figures and inflation data, both of which he says support three rate hikes. He also details the political contingencies that could slow down the Federal Reserve, and what could lead to an even steeper tightening cycle to a higher long-term rate. The bottom line, writes Nash-Stacey, is that Federal Reserve Chair Janet Yellen's press conference on Wednesday will throw significant light on the FOMC's position.

Read the full Fed Watch report here:

Led by Nathaniel Karp, the bank's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA Compass operates. Follow their work on Twitter @BBVAResearchUSA and @BBVACompassNews.

Follow @BBVACompassNews on Twitter

About BBVA Group

BBVA Compass is a subsidiary of BBVA Compass Bancshares Inc., a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The BBVA Group is the largest financial institution in Spain and Mexico, has leading franchises in South America and the Sunbelt region of the United States and is also the leading shareholder in Garanti, Turkey's largest bank based on market capitalization. Its diversified business is focused on high-growth markets and it relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies best practices. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at

About BBVA Compass

BBVA Compass is a Sunbelt-based financial institution that operates 672 branches, including 344 in Texas, 89 in Alabama, 75 in Arizona, 62 in California, 45 in Florida, 38 in Colorado and 19 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass was recently named Best Digital Bank in North America by global finance magazine Euromoney and the best regional bank in the South & West and best mobile app in Money magazine's 2015-2016 list of the Best Banks in America. Additional information about BBVA Compass can be found at, by following @BBVACompassNews on Twitter or visiting

Any statement or opinion of a BBVA Compass economist is that economist's own statement or opinion and does not represent a statement or prediction by BBVA Compass, its parent companies or management.

Editor's Note:
BBVA Compass is a trade name of Compass Bank.



For further information: To talk with Nash-Stacey about the FOMC meeting, contact: Kimberly Tabor, External Communications, Tel - 713-831-5511,

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