Goldman Sachs said markets remain too hawkish on Federal Reserve policy as cooling inflation and softer U.S. retail sales and employment data weaken the case for another rate increase. Chief Economist Jan Hatzius told clients a September hike is very unlikely and said inflation is more likely to keep improving than worsen through the rest of the year. CME FedWatch data showed markets pricing a 25-basis-point September hike at about 30.6%, with roughly 69.4% odds that rates stay unchanged. Hatzius did not make a direct bitcoin price call, but said reduced concern about further Fed tightening could support liquidity conditions and risk appetite, a backdrop that is generally favorable for assets such as bitcoin, which has been trading sideways between about $60,000 and $65,000.