Goldman sees 55% chance of rate hike in September, Markets see 21% probability

Jan Hatzius, is chief economist at Goldman Sachs sees a 55% probability of an interest rate hike in September.

This is far higher than the 21% probability of a rate hike shown by the CME fed funds futures data. More importantly, September rate hike was never on the table, given the markets only saw about 30% probability of a September rate hike before Friday’s payrolls release.