Economics
Goldman Says Don’t Bet on Dollar Selloff as Dovish Fed Priced In
- Policy makers talk up shallower path for interest rates
- Yet traders already pricing in just one hike over next 3 years
This article is for subscribers only.
Goldman Sachs Group Inc. is telling clients not to fret about a sharp selloff in the dollar as the Federal Reserve re-examines the path of interest rates. The market is already far more dovish than policy makers, the bank says.
The greenback weakened for a second week after minutes of the Fed’s July meeting showed officials are divided on the timing of the next rate increase. San Francisco Fed President John Williams this week was the latest in a chorus of officials to call for a rethink of medium-term interest-rate expectations and monetary policy broadly as years of accommodative measures fail to spur growth and inflation. He echoed similar calls from St. Louis Fed President James Bullard just weeks earlier.