NEW YORK (TheStreet) -- The probability of a Federal Reserve interest rate hike in September is now slightly higher after a positive July jobs report published this morning.
"It's about one in three odds that there will be a hike in September. I think you would need to see pretty clear evidence in the FOMC minutes that at the last meeting they considered it a live possibility," Hatzius said on CNBC's "Squawk on the Street" Friday morning.
"We'll hear from other Fed speakers and there's another employment report before the September meeting. I would say the odds are against, but by less than before today's report," he added.
Goldman Sachs' economic indicators point to general growth in the economy over the past few months. Hatzius noted that weaker margins are due largely to "the decline in energy prices" as "the energy sector has been particularly hard hit."
"We shouldn't forget that there is an upsetting benefit from the decline in energy prices for the consumer and the consumer has been quite strong ... if you only focus on the negative impact of this basically distributional shift on the corporate sector and ignore the positive impact on the household sector you're missing part of the picture," Hatzius stated.
Additionally, the decline in the employment participation rate to Hatzius is due to demographics and structural factors. While a low participation rate used to be partly due to cyclical reasons, Hatzius thinks the "cyclical gap is now mostly unwound."
"When it comes to more sort of tangible assessments of how they are doing themselves, people do feel the better economy and the better labor market," Hatzius said.
Separately, TheStreet Ratings team rates Goldman Sachs as a "hold" with a ratings score of C+.
The primary factors that have impacted TheStreet ratings team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GS