Goldman Says Markets Too Hawkish on Betting Fed Will Hike Rates

Goldman Sachs says market bets on additional Fed interest-rate hikes are too aggressive because U.S. inflation is cooling. The call implies a smaller path of hikes than priced, which can move Treasury yields and interest-rate-sensitive sectors as policy expectations adjust.

Analysis

Goldman Sachs says market bets on additional Fed interest-rate hikes are too aggressive because U.S. inflation is cooling. The call implies a smaller path of hikes than priced, which can move Treasury yields and interest-rate-sensitive sectors as policy expectations adjust.