Goldman Sachs Group said that given that inflation in the world's largest economy is falling, the market's expectations of betting on the Fed's interest rate hike are still too aggressive. Jan Hazus, the bank's chief economist, wrote in a customer research report that due to factors such as weakening retail sales data, falling short of expectations in employment data, and slowing inflation, the Federal Reserve's September interest rate hike has become “extremely unlikely.” Hazus said in a research report released on Sunday: “According to our benchmark economic forecast, the probability of further improvement in inflation data over time is higher than another deterioration. We still think the market's pricing of federal funds rates is too hawkish.” According to the data, traders have postponed expectations of the Federal Reserve's next 25 basis point rate hike until January, while the market was fully priced to raise interest rates in December a week ago. Goldman Sachs said that although the hawkish trend in market pricing has weakened, there is still room for a pullback in expectations.

Goldman Sachs Group said that given that inflation in the world's largest economy is falling, the market's expectations of betting on the Fed's interest rate hike are still too aggressive. Jan Hazus, the bank's chief economist, wrote in a customer research report that due to factors such as weakening retail sales data, falling short of expectations in employment data, and slowing inflation, the Federal Reserve's September interest rate hike has become “extremely unlikely.” Hazus said in a research report released on Sunday: “According to our benchmark economic forecast, the probability of further improvement in inflation data over time is higher than another deterioration. We still think the market's pricing of federal funds rates is too hawkish.” According to the data, traders have postponed expectations of the Federal Reserve's next 25 basis point rate hike until January, while the market was fully priced to raise interest rates in December a week ago. Goldman Sachs said that although the hawkish trend in market pricing has weakened, there is still room for a pullback in expectations.