Treasuries Gain as Bond Market Sees Fed Delaying Rate Increase
- Goldman Sachs says this week is too early for a rate boost
- Fed trying to keep expectations `from moving well into 2016'
El-Erian: Next Week's Fed Decision Is a Close Call
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While economists are almost equally divided on whether Federal Reserve chair Janet Yellen will raise U.S. interest rates this week, the bond market suggests policy makers will wait.
The probability of a move at the Fed’s Sept. 16-17 meeting is about 49 percent, Mohamed A. El-Erian, the chief economic adviser at Allianz SE, wrote in a Bloomberg column last week. While the U.S. economy is improving, slowing growth elsewhere combined with rising financial-market volatility are reasons to hold off, he said. “It is that close.”