Daily News: July 7, 2014

Bloomberg: Interest Rate Forecast Brought Forward

Bloomberg reported that Goldman Sachs brought forward its forecast for the Fed to raise interest rates after U.S. employers added more jobs than forecast, sending five-year Treasuries lower for a fourth day.

Bloomberg said, citing a report from Goldman’s chief economist, that the Fed will increase its benchmark in the third quarter of 2015, rather than the first three months of 2016.

Bloomberg notes that traders see a 72% chance officials will raise the key rate from near zero by September 2015, fed funds futures show. That’s up from 56% at the end of May.

To read the entire Bloomberg report, click here.