Market Extra: Goldman slashes September rate-hike odds to 25% after Fed’s Brainard comments

Goldman Sachs economists are losing confidence the Federal Reserve will raise interest rates next week, dramatically cutting their September rate-hike odds following a series of mixed messages from policy makers in recent days.

In a note out late Monday, the team led by Goldman’s GS, +1.48% chief economist Jan Hatzius slashed its forecast for a rate increase at the Sept. 20-21 meeting to a probability of 25% from 40% previously. It also lifted the odds for a December tightening to 40% from 30%.

“A series of speeches by Fed officials concluded [Monday] with remarks by Governor [Lael] Brainard.

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