Goldman Sachs on Fed Funds rate: "Fairly easy path to a second hike in March"

A few excerpts from a research piece by Goldman Sachs economists David Mericle and Daan Struyven A Road Map to Hikes in March and Beyond The FOMC raised its target range for the federal funds rate to 0.25-0.50% this week, shifting attention to the pace of subsequent hikes. While the median dot indicates a further 100bp increase in the funds rate in 2016, implying a second hike in March, the market is skeptical. ... We see a fairly easy path to a second hike in March. We expect growth to remain above trend and employment gains to remain well above the "breakeven" rate. Most importantly,......(read more)

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