Goldman Sachs Hatzius - expects Fed to hike in September, even though good reasons to wait

Goldman Sachs chief economist Jan Hatzius in a note to clients:

Still forecasting a Federal Reserve rate hike at the September FOMC meeting

But says there are persuasive reasons them to wait until the new year:

• "Our forecast remains that the Fed policy committee will hike rates at the September meeting, but ...this remains a close call"
• "There is a strong risk management case for delaying liftoff"

Hatzius says there is a lot of uncertainty around the outlook for the economy & the labor market

• Says much of Q1 weakness was spurious
• But a substantial rebound is not automatic