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HomeEconomyGoldman sees Powell sticking to July tightening at Jackson Hole

Goldman sees Powell sticking to July tightening at Jackson Hole

(Reuters) – Goldman Sachs (NYSE: GS) said on Tuesday it expects Federal Reserve Chairman Jerome Powell to reiterate the pace of tightening in a speech The justification was at the annual Jackson Hole symposium on Friday.

Goldman Sachs economists said in a research note that the information will be the same as in the July press conference and July FOMC minutes released last week.

“He will likely balance this message by emphasizing that the FOMC remains committed to reducing inflation and that upcoming policy decisions will depend on incoming data,” the report said, adding Policymakers have argued that the easing in financial conditions since July has done little to keep the economy on track below potential growth.

Goldman Sachs expects the FOMC to raise rates in September 50 basis points to 50 bp was not as aggressive as the 25 basis point hikes in the previous two meetings in November and December.

Fed Funds futures traders are priced at 52. 5% probability is 52 under Rate hike points (bps) at the Fed meeting in 2018. [FEDWATCH] The odds of a September rate hike 52 bp are slightly above average on Monday.



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