• İstanbul 15 °C
  • Ankara 10 °C

US Fed rate hike in June off table, says Goldman Sachs

US Fed rate hike in June off table, says Goldman Sachs
Bank says a July increase possible

NEW YORK (AA) – It is unlikely that the Federal Reserve will raise interest rates next week, but a rate hike in July is still possible, Goldman Sachs said in a report.

"We believe June is largely off the table given the weakness of Friday’s employment report and the U.K. referendum on its EU membership in June.

But we think the July meeting is live," said Charles P. Himmelberg, head of Global Credit Strategy at the bank and author of the report released Wednesday.

The U.S. economy added 38,000 jobs in May – its fewest since September 2010 -- against market expectations of 160,000 new jobs.

The weak data reported last week was viewed by analysts as negatively affecting a possible Fed rate hike later this month.

"We continue to see the probability of the next rate hike at 0 percent for June, 40 percent for July and 30 percent for September," Himmelberg said.

He said Fed Chair Janet Yellen's speech Monday, "presented a generally upbeat view of the U.S. economy" and that she did not provide an explicit timeline.

Himmelberg said in the report the Fed decided at its January, March, and April meetings that it would be cautious about a rate hike, but added, "when financial conditions eventually eased to the low end of the historical range shown above, Fed speak began to turn more hawkish."

The Fed pointed to weak domestic labor market conditions and risks abroad, such as Great Britain’s possible exit from the EU and the Chinese economy, in its previous meetings this year.

The bank last raised its benchmark interest rate in December -- the first increase in almost a decade.

source: News Feed
This news is a total 173 time has been read
UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
This news yet comment has been added .
Other News
  • UK inflation rate rises beyond target12 December 2017 Tuesday 14:08
  • Erdogan: Annual growth rate likely to hit 7.5 pct12 December 2017 Tuesday 14:03
  • 8 in 10 Turks back EU membership, survey finds12 December 2017 Tuesday 11:23
  • Over 22M cars, trucks on Turkish roads12 December 2017 Tuesday 10:18
  • Turkey's Borsa Istanbul flat at open12 December 2017 Tuesday 09:58
  • Apple acquires music app Shazam11 December 2017 Monday 23:33
  • UPDATE - Erdogan: S-400 missile deal with Russia to be finalized11 December 2017 Monday 21:48
  • Turkey's Borsa Istanbul up at close11 December 2017 Monday 19:23
  • Reforms vital for Turkey's growth: Deputy PM11 December 2017 Monday 12:28
  • UPDATE - Turkish GDP grows double digits11 December 2017 Monday 10:33
  • All Rights Reserved © May 2014 US Muslims | Unauthorized and the resources published.
    Haber Scripti: CM Bilişim