Jan Hatzius says Goldman Sachs views September Fed hike unlikely
Goldman Sachs is calling out Wall Street for being a bit too eager about another US Federal Reserve interest rate hike.
Its chief economist, Jan Hatzius, points to weak retail sales, a slow job market, and falling inflation, so he thinks a September rate hike is "very unlikely."
In fact, he expects inflation to keep improving and says the market's bets on more hikes are just "too hawkish."
Traders push Fed hike to January
Traders have now pushed their expectations for the next Fed rate hike to January instead of December. With softer economic data and cooling inflation, many believe there won't be another hike this year.
This has made US Treasury bonds more attractive lately, though long-term yields are still high because of government borrowing.
Goldman also predicts the yield curve will keep steepening as inflation eases, and fewer hikes are expected.