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Goldman sees rate hike odds rise as Trump slides in polls

Donald Trump
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Goldman Sachs economists now see a 75 percent chance of a Fed rate hike by the end of the year, with odds rising as Republican Donald Trump's chances of winning the White House have fallen.

In a note, the economists point to a swing in the election outcome toward Democrat Hillary Clinton as well as better economic growth as reasons for raising the odds from 65 percent. According to their "subjective probability," the chances for a November rate rise are 10 percent and for a December hike are 65 percent.

They point to betting markets and poll aggregators, which show the probability of a Trump win falling to 10-20 percent, down from 30-35 percent two weeks ago.