Goldman Sachs assigns a 75% chance to a FOMC hike in 2016

Goldman Sachs Chief Economist Jan Hatzius said on Tuesday that he now sees a 75% probability of a Fed rate hike this year versus 65% seen previously.

Key Quotes:

“We have revised up our subjective probability of a move this year from 65% to 75%, with meeting-by-meeting probabilities of 10% in November and 65% in December.”

“The increase is due to a combination of the better growth data and the swing in the presidential election race toward Secretary Clinton.”

“This is important as market participants seem to view a Trump victory as a potential trigger for a significant tightening in financial conditions, which in turn could result in another delay for the FOMC.”