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The S&P 500 is nearing its all-time high, and as investors celebrate, Goldman Sachs reminds them the strong economy makes a July rate hike all the more likely.
The Fed’s near-constant jumps from hawkish to dovish on another interest rate hike have not been random—they’ve been influenced by fluctuations in the economy, says Goldman’s chief credit strategist, Charles Himmelberg, Bloomberg reports.
“We think the July meeting is live, without our US economics team seeing a 40% probability of a second hike,” Himmelberg says, as the Fed weighs the impact of the recent value of the dollar, 10-year US Treasury yield, credit spreads and stock prices. [Bloomberg]
