September 21, 2015

Goldman Calls It: No Rate Hike Until Mid-2016

... we got the latest confirmation that when it comes to policy, anything that Goldman wants, Goldman gets courtesy of a few clueless lifetime academics in charge of the US money printer.

With that out of the way, the only question that remains is not what will the Fed do, but what Goldman tells the Fed to do in 2015, or rather in 2016, because according to Jan Hatzius' latest note, one can forget about a hike in October or December, and instead focus on 2016, or rather the summer of 2016.
For the answer, we go straight to Goldman which in a rhetorical Q&A wonders "What were the most important things you learned from this week’s FOMC meeting?" to which the answer is "Mostly, the FOMC confirmed what we already knew."
Well, duh, the Fed merely read the script Goldman bad prepared - of course what the Fed confirmed what Goldman already knew. 
The punchline: Goldman no longer wants a 2015 rate hike, in fact any rate hike if it ever comes, will be in the summer of 2016:

No comments:

Post a Comment

Share this...