The Federal Reserve is "clearly" not going to hike rates at its meeting this week thanks to May's disappointing jobs report, but there is a "decent" chance it will raise rates in July, Jan Hatzius, chief economist at Goldman Sachs, said Monday.
"The most important factor is whether the next employment report shows this last one to be basically an outlier on the loss side. That would be my expectation," he said in an interview with CNBC's "Closing Bell."
The U.S. added just 38,000 jobs in May, according to the Labor Department. The number came in well below expectations for 162,000 positions.
If it hadn't been for the employment report, there was "at least a chance" of the central bank increasing interest rates in June, said Hatzius.
Goldman Sachs now sees a 35 percent chance of a rate hike in July, and a 35 percent chance of it happening in September.
"Nothing is ever going to all line up just because there are so many data points out there and there's quite a bit of noise in them," he said. "But you want a preponderance of the evidence to point towards it."