Goldman Forecast: No Rate Hike in March - InvestingChannel

Goldman Forecast: No Rate Hike in March

A few excerpts from a research piece by Goldman Sachs economists Jan Hatzius and Zach Pandl: Revising our Fed Call

We … now expect the FOMC to keep policy rates unchanged at the March 15-16 meeting … financial conditions have tightened meaningfully, and officials sound inclined to take more time … We therefore expect the next rate increase in June, and see a total of three rate increases this year.

… our forecasts remain well-above market pricing, which now shows only about a 50% chance that the Fed raises rates at all this year, and a 25% chance that the committee lowers rates. The first full rate hike is not priced in until about August 2017.

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