Goldman, Citigroup See Winning Bets Against Super-Sized Fed Hike
- Banks are recommending trades that would gain on smaller move
- Markets Friday raised bets on first half-point hike since 2000
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Two of Wall Street’s largest banks, Goldman Sachs Group Inc. and Citigroup Inc., are recommending bets against a super-sized rate hike from the Federal Reserve in March.
Speculation that the Fed would kick off its hiking cycle with its first half-percentage-point rate increase since 2000 surged on Friday after the Labor Department reported that payrolls expanded at a surprisingly fast pace in January. Swaps markets by late Friday gave roughly 50% odds to such a move, though they have since eased back to around 32%.