Goldman moves up forecast for first rate hike

|By:, SA News Editor

The Fed will first boost the Fed Funds rate in Q3 2015 rather than 2016's first quarter, says Goldman chief economist Jan Hatzius, his revised forecast coming after Thursday's big jobs number, but noting "the cumulative changes in the job market, inflation, and financial conditions over the past few months."

The new forecast is still a bit more dovish than market expectations for a rate hike by mid-year, but Hatzius notes a larger significance to his move: It's the first time since the crisis he's actually moved forward his expectations for rate hikes.

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