Thursday, 18 June, 2015

Goldman Sachs Pushes Back Fed Funds Rate Lift-Off to Dec. 2015

Goldman Sachs Pushes Back Fed Funds Rate Lift-Off to Dec. 2015 Thursday, June 18, 2015 06:10 am by Joshua Robinson (Bloomberg) — Goldman Sachs previously expected an increase in September of this year, Chief Economist Jan Hatzius and Senior Economist Zach Pandl comment in a client note dated June 17. · Seven FOMC participants are now predicting zero or one rate hike this year, expect that to include Fed Chair Janet Yellen · FOMC did not signal a September hike in June meeting · o Hike in September still possible if inflation is stronger or there is an easing in financial conditions · Risks surrounding Greece and its creditors may also be a reason to delay lift-off · “Our new call moves our forecast for what the FOMC will do closer to our long-standing view of what the FOMC should do” · Expect the FOMC to raise rates by 100bps per year · o Fed funds range reaching 1.25-1.50% by end-2016 o 2.25-2.50% by end-2017, terminal fed funds rate at 3.50-3.75% in early 2019 . Archr LLP is Authorised and regulated by the Financial Conduct Authority (FCA reference 617163). Archr LLP is not covered by the Financial Services Compensation Scheme (FSCS). Archr is registered in England and Wales No. OC371018. Registered office Chancery House, 30 St Johns Road, Woking, Surrey, GU21 7SA This message may contain confidential or privileged information. If you are not the intended recipient, please advise us immediately and delete this message. The unauthorised use, disclosure, distribution and/or copying of this e-mail or any information it contains is prohibited. This information is not, and should not be construed as, a recommendation, solicitation or offer to buy or sell any securities or related financial products. This information does not constitute investment advice, does not constitute a personal recommendation and has been prepared without regard to the individual financial circumstances, needs or objectives of persons who receive it. You are receiving this email because you are a valued client of Archr.