Economics
Skepticism Mounts for Fed Rate Hikes Post-June as Data Soften
- Odds for September FOMC rate increase have fallen to below 25%
- Fed officials insist latest jobs data isn’t a game changer
Hatzius Says Fed Must Hike Beyond Market Expectations
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While Janet Yellen and her Federal Reserve colleagues are poised to raise interest rates at their meeting this month, investors increasingly doubt the central bank’s projection for additional hikes following soft reports on U.S. employment and inflation.
Goldman Sachs Group Inc. on Friday pushed back its forecast for a third rate increase this year to December from September. Trading in futures contracts shows odds of a September increase have dropped to just one in four, and investors are now pricing in less than one rate hike in 2018 for the first time since the eve of the U.S. elections in November.