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Goldman calls a September Fed rate hike very unlikely

Goldman cited improving inflation expectations and said current federal funds pricing is too hawkish, with bitcoin trading near $63,500.

Reported · Written up by our desk · Market Structure

Goldman Sachs said a September increase in the Federal Reserve benchmark rate is “very unlikely,” arguing that inflation is likely to keep improving and that market expectations are still too aggressive, according to CoinDesk citing a note by the bank’s chief economist Jan Hatzius.

Hatzius pointed to a run of softer economic data, including weaker retail sales and employment figures alongside slowing inflation, as support for the lower odds of a rate hike.

The report comes as bitcoin trades around $63,600, up about 1% on the day, and remains confined to a $62,000 to $66,000 range that has held since early July.

CoinDesk also noted that, based on CME FedWatch data, traders were pricing about a 30.6% chance of a 25 basis point hike to a 3.75% to 4% target range, with most expectations calling for no change.

Latest closeBitcoin $63,324.38 ▲0.8%

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