Goldman Sachs Asset Management expects the Federal Reserve to remain on pause for the time being, citing recent labour market strength that has helped justify the central bank’s cautious stance.
“The Fed remains in a holding pattern as it waits for uncertainty to clear,” the firm said in a note. While job data has come in better than feared, Goldman believes a sustained easing cycle hinges on clear signs of labour market softening — a trend that may take months to materialise.
“With the labour market yet to show meaningful deterioration, we see the odds skewed toward another ‘hold’ at next month’s meeting,” the firm added.
—
The Federal Open Market Committee (FOMC) left rates unchanged at its meeting on Wednesday:
This article was written by Eamonn Sheridan at www.forexlive.com.