Goldman Sachs's Cohn says Fed in 'tough position' on rate hike

[LONDON] Goldman Sachs Group Inc President Gary Cohn said the Federal Reserve may be hampered by the strength of the dollar in its efforts to raise interest rates.

"The Fed is in a very tough position," Mr Cohn said Tuesday in an interview on Bloomberg Television. "They're going to be constrained by circumstances, going to be concerned about the strength of the dollar, and other countries are going to continue to devalue." Mr Cohn said he understands why the central bank wants to raise rates. Still, actions by other countries may strengthen the dollar more than is warranted by growth in the US, he said. Last week's better-than-expected employment numbers aren't enough proof that the US economy has fully recovered, Mr Cohn said.

"I am not convinced that one good jobs report last Friday has changed the whole world," he said.

BLOOMBERG