Your Dovish Take on Powell Is Wrong, Goldman Tells Bond Traders
- Market should take note of his mention of study by Fed staff
- Firm sticks to forecast for 2 more hikes in 2018, 4 in 2019
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Goldman Sachs Group Inc. is telling traders to be wary of reading Federal Reserve Chairman Jerome Powell’s comments last week as dovish for the path of interest rates.
Ten-year Treasury yields fell Friday on Powell’s speech at the Kansas City Fed’s annual policy symposium, when he said “there does not seem to be an elevated risk of overheating.” What’s more, the maturity’s spread over two-year yields is close to the lowest since 2007.