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Goldman Sachs economist says 55% chance of September FOMC rate hike

05 September 2016 10:43 (UTC +04:00)

Baku - APA-Economics. Goldman Sachs economist gives a 55% probability to a September Federal Reserve rate hike.

According to him, September does have some tactical advantages if they think a move sometime this year is very likely. It would avoid the need to first go through yet another press conference meeting with no hike, yet another reduction in the projected funds rate path-at a minimum to a one-hike baseline for 2016-and yet another labored explanation why holding off now does not mean that the plan for higher rates has been abandoned. Many market participants believe that the FOMC likes to talk about hiking soon but ultimately always flinches. A hike in September would undermine this narrative.

However, he said that Goldman Sach is much more confident (80%) that there will be a hike before the end of the year.