Goldman Sachs: The market's expectations for the Federal Reserve's interest rate hike are too hawkish

Goldman Sachs stated that as U.S. inflation is cooling, market expectations for the Federal Reserve's interest rate hikes remain overly aggressive. Goldman Sachs Chief Economist Jan Hatzius pointed out that weak retail sales data, disappointing employment data, and continuously slowing inflation data make the likelihood of an interest rate hike at the Fed's September meeting extremely low.

The market has pushed back expectations for the next 25 basis point rate hike to January of next year.