Goldman Sachs Lowers Their Fed Rate Hike Odds

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.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza