GOLDMAN: MARKETS MISREAD FED AS OIL SPIKE FUELS RATE FEARS Goldman Sachs says investors are overestimating the chance of Fed rate hikes as oil prices surge. Brent crude above $115 has fueled inflation fears and pushed traders to price a more hawkish Fed, but Goldman argues this reaction is overdone and out of line with history. The bank points to 1990, when markets expected tightening after an oil shock — but the Fed ultimately cut rates as growth weakened. Bottom line: markets are pricing higher rates, but slowing growth could force the Fed in the opposite direction.(*Walter Bloomberg)