US: Dec rate hike still coming – Goldman Sachs

FXStreet (Delhi) – Samuel Wong, Research Analyst at Goldman Sachs, suggests that he still expect a rate hike at the December FOMC meeting as the leadership has signaled that such a move is likely if the economy and markets evolve broadly as expected, and our forecast is similar to theirs.

Key Quotes

“However, we are only about 60% confident. Most of the uncertainty relates to the possibility that the economic and market environment—or in a broad sense, “the data”—will be worse than the FOMC’s (and our) expectations.”

“The low market implied probability of a December hike of only 30%40% probably reflects a mixture of concerns about the data (which we find reasonable) and a belief among some market participants that the FOMC will find an “excuse” to stay on hold even if the economy does fine (which we find unreasonable).”

Samuel Wong, Research Analyst at Goldman Sachs, suggests that he still expect a rate hike at the December FOMC meeting as the leadership has signaled that such a move is likely if the economy and markets evolve broadly as expected, and our forecast is similar to theirs.

(Market News Provided by FXstreet)