December Liftoff? The Case for Waiting

Published on19 OCT 2015

It's the question on everyone’s mind: will the Fed raise interest rates for the first time in nearly a decade at the December FOMC (Federal Open Markets Committee) meeting? Jan Hatzius, chief economist at Goldman Sachs, notes that the latest signals from the central bank’s leadership suggest a December hike is in the cards. Still, with wage growth and price inflation far from the Fed’s targets, he says it may be more prudent to wait.

Our expectation is that the Federal Reserve is going to hike rates at the December FOMC meeting… However, we think it’s a fairly close call.

- Jan Hatzius

Jan Hatzius
Chief Economist, Global Investment Research, Goldman Sachs