Goldman Sachs Cuts Rate Hike Chances
Tuesday September 13, 2016 11:43
(Kitco News) - Goldman Sachs has lowered the odds for a U.S. Fed rate hike next week to 25 percent from 40 percent.
However, the bank did raise the odds that the next increase will come at the December meeting to 40 percent from 30 percent previously, Goldmanâ??s Jan Hatzius said in a note.
Goldmanâ??s new forecast comes following Mondayâ??s dovish comments from Fed Governor Lael Brainard, who cautioned about moving too quickly.
"The lack of a signal is meaningful because if action were likely, the committee would normally make an effort to nudge the market toward anticipating a hike," Goldman Sachs said in the note.
Brainard, a voting member of the Federal Open Market Committee (FOMC), was the last scheduled Fed speaker before the Sept. 20- 21 meeting.