Goldman Sachs says a Federal Reserve rate hike in September is very unlikely, citing signs that inflation is cooling. In a Sunday client note, the bank’s chief economist Jan Hatzius points to weakening economic indicators that suggest restrictive policy may not need to be increased again soon.
According to reports, Hatzius highlights softer retail sales and weak employment data alongside slowing inflation as key evidence. The outlets frame the argument as a shift away from near-term tightening, emphasizing the combination of demand and labor-market softness with improved inflation dynamics.
While the reports agree on Goldman’s stance, they differ mainly in emphasis and phrasing. Both describe the same underlying rationale—cooling inflation plus weaker activity data—leading Goldman to characterize a September hike as highly improbable rather than merely uncertain.
