Goldman says not so fast as BlackRock sees earlier Fed increase - News and Current Events | futures io social day trading
futures io futures trading


Goldman says not so fast as BlackRock sees earlier Fed increase
Updated: Views / Replies:229 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Goldman says not so fast as BlackRock sees earlier Fed increase

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Goldman says not so fast as BlackRock sees earlier Fed increase

Goldman Sachs Group Inc. says investors shouldn’t rush to anticipate a rate increase from the Federal Reserve after jobs gains beat economist forecasts. BlackRock Inc. said it’ll happen sooner than expected.

“Not so fast,” Jan Hatzius, the chief economist at Goldman Sachs in New York wrote in a report dated yesterday. Labor-market slack will help keep the Fed from raising borrowing costs until the third quarter of next year, according to Hatzius. Goldman, which gets the largest share of revenue from trading among U.S. banks, is one of the 22 primary dealers that trade directly with the central bank.

“The Fed’s going to move faster than people think,” BlackRock’s chief investment officer for fundamental fixed income Rick Rieder said Oct. 3, reiterating an earlier view. “We have an economy today that’s going, we think, quite strong,” he said on Bloomberg Television’s “Market Makers” with Erik Schatzker and Stephanie Ruhle. The company’s $4.32 trillion in assets make it the world’s biggest money manager.

The division highlights the dilemma Fed Chair Janet Yellen faces over when to raise borrowing costs from the record low while growth is uneven. Ten-year U.S. yields (CBOT:ZNZ14) have fallen more than half a percentage point during 2014 as investors sought the relative safety of government debt amid concern the economy is performing below its potential.

The U.S. added 248,000 jobs in September, the Labor Department reported Oct. 3, compared with 215,000 projected by a Bloomberg News survey of economists. The jobless rate fell to 5.9% from 6.1%.


Trader Expectations


While hiring picked up, reports on Oct. 1 showed U.S. manufacturing growth slowed in September and data on Oct. 3 showed wage growth stagnated.

The implied yield on 30-day federal funds futures expiring in October 2015 was 0.565%, indicating traders expect the central bank to increase the target for its main interest rate from the current range of zero to 0.25% by then.

“We are looking for the Fed hike to come in the third quarter of next year,” said Richard Kelly, senior rates strategist at Toronto-Dominion Bank in London. The market is trying to price in an earlier rate increase and “that strong employment report was helpful but we know the Fed is much more wary of broad-based measures. The wage data did disappoint and you only care about the labor market to the extent that it’s generating wage growth. If that’s delaying, it can keep the Fed on pause for a little bit longer.”


Benchmark Estimate


Fed officials in September boosted their median estimate for the benchmark for the end of 2015 to 1.375%, compared with 1.125% in June. They have kept their target for the rate that banks charge each other on overnight loans close to zero since December 2008.

Last month, policy makers also trimmed their monthly bond purchases for a seventh straight time, staying on course to end the program this month. They kept their pledge to maintain interest rates near zero for a “considerable time” after the asset buying stops.

The Fed will probably keep the language in its statement after its next meeting Oct. 28-29, Goldman’s Hatzius wrote.

Fed Bank of St. Louis President James Bullard said last month the October meeting would be a “natural juncture” for ending the pledge.

For BlackRock, the threat of higher short-term yields means it prefers long-term Treasuries and municipal bonds in the U.S., Rieder said.

“We’ve been stubbornly adamant” in calling for an early rate increase, he said.

Goldman says not so fast as BlackRock sees earlier Fed increase

Reply With Quote
The following user says Thank You to kbit for this post:

Reply



futures io > > > > Goldman says not so fast as BlackRock sees earlier Fed increase

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Goldman Sees Fear of 'Cliff' Hitting Stocks Next Quarter Quick Summary News and Current Events 0 September 24th, 2012 04:30 PM
Gross Says QE3 Getting Closer as Goldman Sees Easing kbit News and Current Events 0 May 9th, 2012 10:04 PM
Goldman's Stolper Speaks, Sees EUR Downside To 1.20 kbit News and Current Events 0 January 7th, 2012 11:39 AM
Italy-Pregnant BlackRock Sees Write-Downs Of 75-80% For Greece, Portugal And Ireland Quick Summary News and Current Events 0 November 14th, 2011 12:30 PM
BlackRock Sees Meaningful Slowdown in Second Half Quick Summary News and Current Events 0 September 21st, 2010 08:10 AM


All times are GMT -4. The time now is 03:17 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.08 seconds with 19 queries on phoenix via your IP 54.226.172.30