Wall Street deeply divided on this week’s rate decision

Sept 14, 2015 (LBO) - U.S. analysts are deeply divided on whether the Fed should increase rates on September 17, it's first rate hike in nearly a decade. Some believe a hike will be a major blunder slowing down an already vulnerable global economy, while others say the expansion is healthy enough and a cycle of loose monetary policy needs to end.

Goldman Sachs believes the stocks sell off and stronger dollar have contributed to monetary tightening equivalent to three 25 basis-point hikes. Guy Haselmann, a Scotiabank strategist, says he has never seen such confusion on Wall Street, which he blames on mixed messages coming out of the Fed, a media report said. Futures traders place a 28 percent chance of a 25 basis point rate hike, while half of analysts polled expect a rate increase. Asian markets have been watchful ahead of the announcement, and Nikkei opened down 0.

12 percent, Shanghai up 0.45 percent on Monday. Crude oil was flat at 48.14 dollars per barrel.