Goldman Sachs no longer expects the Fed to hike rates in March, cites stress on banking system - CNBC

Goldman Sachs no longer sees a case for the Federal Reserve to deliver a rate hike at its meeting next week, citing "recent stress" in the financial sector.

"In light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22," Goldman economist Jan Hatzius said in a Sunday note.

Goldman Sachs economists said the package of relief measures announced Sunday stops short of similar moves made during the 2008 financial crisis.

"Both of these steps are likely to increase confidence among depositors, though they stop short of an FDIC guarantee of uninsured accounts as was implemented in 2008," they wrote.

"In light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22," Goldman economist Jan Hatzius said in a Sunday note.

The firm expects the latest measures to "provide substantial liquidity to banks facing deposit outflows" and boost confidence among depositors.