Goldman Sachs still thinks a July rate cut is more likley Adam Button Forexlive RSS Breaking CentralBanks Feed

Goldman Sachs chief economist Jan Hatzius was on CNBC and said this:

I’m pretty confident the wage trend is downIf we look at other indications like the Atlanta tracker, wage trend is downI do expect ‘much better’ PCE numbers in the second quarterA July cut is still a reasonable baseline, it’s still more likely in our view

I often write that when an economist says ‘still’ it means that he’s lost confidence. That’s not a big surprise seeing as Goldman Sachs is way out of consensus on a July rate cut.

That said, they’re crunching the numbers and the comments about wages and PCE are what matters in the bigger picture more than if Fed cuts come in July, Sept or November.

This article was written by Adam Button at www.forexlive.com.Goldman Sachs chief economist Jan Hatzius was on CNBC and said this:I’m pretty confident the wage trend is downIf we look at other indications like the Atlanta tracker, wage trend is downI do expect ‘much better’ PCE numbers in the second quarterA July cut is still a reasonable baseline, it’s still more likely in our viewI often write that when an economist says ‘still’ it means that he’s lost confidence. That’s not a big surprise seeing as Goldman Sachs is way out of consensus on a July rate cut.That said, they’re crunching the numbers and the comments about wages and PCE are what matters in the bigger picture more than if Fed cuts come in July, Sept or November.

This article was written by Adam Button at www.forexlive.com.  Read MoreCentral Banks 

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