Goldman Sachs still sees 3 Fed rate hikes in 2017

Analysts at Goldman Sachs still bet on the odds for three Fed rates hikes this year.

Key Quotes:

“US growth has picked-up sharply in recent months. Although the 227,000 increase in non-farm payrolls was probably boosted by the swing from an unusually snowy December to a more seasonable January, less weather-sensitive indicators also tell an upbeat tale.”

“Despite the strong growth in output and employment, the January employment report showed an economy with a bit more “room to run” than we had expected.”

“We have not changed our modal forecast for three hikes this year, and our cumulative probability of at least one hike by June remains a solid 80%.”