Fed: Depending on the economy, a third rate hike could be delivered in December  - BBH

Analysts from Brown Brother Harriman, expect the Federal Reserve to announce in September the normalization process of the balance sheet, starting in October. They see no consensus at the Fed for another rate hike. 

Key Quotes: 

“A careful reading of Fed comments led us to conclude that a consensus on reducing the balance sheet was intact, though a consensus for another hike may prove more difficult until there is more evidence for the official suspicion. Hence we look for the FOMC meeting in a fortnight to only modestly tweak the statement.”

“In September we expect the Fed to announce that it will begin implementing its strategy to gradually reduce its balance sheet starting in October. Depending on the evolution of the economy and inflation, a third rate hike for the year could be delivered in December.”