Saturday, March 11, 2017

Goldman: FOMC Preview

by Bill McBride on 3/11/2017 02:58:00 PM

A few excerpts from a note by Goldman Sachs economists Zach Pandl and Jan Hatzius:

A rate increase at the March FOMC meeting now looks like a forgone conclusion ...

First, financial conditions have eased substantially. ... Second, incoming activity data continue to surprise on the upside.
...
We expect the FOMC to make a few changes ... including indicating that risks to the economic outlook are “balanced”, and signaling that the 2% inflation objective will likely be reached before too long. In the Summary of Economic Projections (SEP) we look for slight upgrades to GDP growth and core inflation ...
emphasis added
CR Note: Just about everyone expects a rate hike at the FOMC meeting this week.