Goldman Sachs Sees Lower Odds of September QE3 on Data

Stronger U.S. economic data have reduced the probability that the Federal Reserve will announce a third round of so-called quantitative easing when policy makers gather next month, Goldman Sachs Group Inc. said.

“We do not expect a move to QE3” at the Sept. 12-13 Federal Open Market Committee meeting, Jan Hatzius, chief economist at Goldman Sachs in New York, wrote yesterday in a note to clients, citing retail sales that rose more than forecast in July. Economic growth probably accelerated, he said.