Goldman Says Markets Too Hawkish on Betting Fed Will Hike Rates

Goldman Sachs Group Inc. reports that market bets on Federal Reserve interest-rate hikes are too aggressive as US inflation cools. The firm suggests a September increase is very unlikely, warning that misjudged expectations could misprice fixed income and rate-sensitive equities. Consequently, the dollar hit a three-month low as traders scaled back tightening bets following soft economic data. This dollar slide may boost commodity prices, potentially complicating inflation dynamics and influencing future Federal Reserve policy decisions.