Make Kitco Your Homepage

Fed won't cut rates this year, Goldman analyst says

Kitco News

SAN FRANCISCO (Reuters) - The Federal Reserve will more likely than not leave interest rates unchanged this year, defying expectations now built into financial markets for several rate cuts, a Goldman Sachs economist told investors in a note Monday.

“Although it is a close call, we still expect the FOMC to keep the funds rate unchanged in the remainder of the year,” economist Jan Hatzius wrote, referring to the Federal Open Market Committee. Fed Chair Jerome Powell’s promise to act “as appropriate” was not meant to signal a rate cut, he said, but was merely meant to show the U.S. central bank was not tone deaf to rising trade tensions.

Reporting by Ann Saphir

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.