Goldman Sachs: Fed's Rate Hike Could Come 'Well Into 2016'

Goldman Sachs (GS) says the Federal Reserve's rate hike may be delayed until 2016, or perhaps later. This comes on the heels of last Friday's dismal jobs report - the economy created only 142,000 jobs in September, missing estimates of over 200,000. The numbers for August and July were revised downward, showing more softness in the labor market than expected. Though the investment bank is still maintains its December forecast for a rate hike, according to a client note. But the markets tell a different story, pricing in a 34 percent chance of a liftoff during the Fed's December meeting and a 73 percent probability of a rate hike during the central bank's June 2016 meeting. The Fed is set to hold its next two-day policy meeting on October 27th and 28th. TheStreet's Scott Gamm reports from New York.