Goldman Sachs Says Fed May Delay Rate Increase Well Into 2016
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Traders cut bets on rate move this year to 35%, futures show
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Weak job data make it hard for Fed to act, Mitsubishi UFJ says
Goldman Sachs Group Inc. says there’s a chance the Federal Reserve will delay its planned interest-rate increase well into 2016, or even later.
While a December liftoff is still the company’s central forecast, a slowdown in output and employment may justify policy makers keeping the near zero rate policy for “much longer, well into 2016 or potentially even beyond,” Jan Hatzius, the bank’s New York-based chief economist, wrote in a note to clients.
Futures traders have been trimming bets the Fed will boost rates this year even as officials including Chair Janet Yellen and William C. Dudley have said they expect to act in 2015. Kansas City Fed President Esther George and San Francisco Fed President John Williams are scheduled to speak Tuesday…
Goldman Sachs Says Fed May Delay Rate Increase Well Into 2016
