We view Chair Powell's promise at Jackson Hole to 'proceed carefully' as a signal that a September hike is off the table and the hurdle for a November hike is significant."
"On net, our confidence that the Fed is done raising rates has grown in the past month," added Hatzius.
Goldman also said taking out certain distortions shows underlying inflation may already be close to the Fed's 2% desired target.
Goldman doesn't believe the Fed will start cutting rates anytime soon, in part because the firm sees the economy remaining strong.
Hatzius said the Fed would begin "very gradual" rate cuts starting in the second quarter of next year.
Persons:
Goldman Sachs, Jan Hatzius, Jackson, Nonfarm, Hatzius, Goldman, Goldman doesn't, — CNBC's Michael Bloom
Organizations:
Fed, Bloomberg
Locations:
U.S