Goldman Says Not So Fast as BlackRock Sees Earlier Fed Increase
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Goldman Sachs Group Inc. says investors shouldn’t rush to anticipate a rate increase from the Federal Reserve after jobs gains beat economist forecasts. BlackRock Inc. said it’ll happen sooner than expected.
“Not so fast,” Jan Hatzius, the chief economist at Goldman Sachs in New York wrote in a report dated yesterday. Labor-market slack will help keep the Fed from raising borrowing costs until the third quarter of next year, according to Hatzius. Goldman, which gets the largest share of revenue from trading among U.S. banks, is one of the 22 primary dealers that trade directly with the central bank.