Dollar's appreciation is a drag for the Fed - Nomura

Analysts at Nomura explained that in the longer run, they remain relatively comfortable with our expectations for 2 hikes in 2017 and another 2 hikes in 2018 from the Fed.

Key Quotes:

"One implication of a lower “neutral” rate is that monetary policy is providing less stimulus. Under these circumstances, a slower pace of rate adjustment may be warranted.

Also, Fed officials such as Governor Brainard have argued that the dollar may be more sensitive to US monetary policy than it has been in the past.

This would also suggest more drag from dollar appreciation than the FOMC might have assumed before."