Fed: Odds of December hike jump to 85% - Goldman Sachs

The FOMC recently left the Fed Funds target range unchanged at its November meeting, as widely expected and the main surprise was the upgrade of the growth assessment to “solid” for the first time since January 2015, according to analysts at Goldman Sachs.

Key Quotes

“The statement made no changes to the balance of risks (“roughly balanced”) or to the inflation assessment (“below 2 percent”), but it did add that core inflation “remained soft.” We view the statement as broadly consistent with a December hike, provided that economic conditions do not worsen appreciably. Based on this as well as the strong recent data, we increased our subjective odds of a December hike to 85% (from 75% previously).”