Tuesday, June 5, 2007

Goldman's Hatzius Eats `Crow,' Drops Forecast for Fed Rate Cuts This Year

(Bloomberg) -- Goldman Sachs Group Inc. became the
latest Wall Street firm to capitulate and drop its forecast for
the Federal Reserve to lower borrowing costs this year.

``Mmhhh, crow,'' Jan Hatzius, chief U.S. economist, started
off a note to clients today explaining why New York-based Goldman
now expects the central bank to keep its target rate at 5.25
percent. Hatzius cited a resilient labor market and a
reacceleration of growth in the industrial sector of the economy.


Read more at Bloomberg Bonds News

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