Jan Hatzius Says Government Spending Cut Will Hurt GDP (GS)

Jan Hatzius, chief economists at Goldman Sachs (NYSE: GS) said that as the government reduces fiscal policy, economic growth will drag.

Hatzius said that he sees a modest uptick in interest rates over the next year, but does not expect anything major. He said he sees the Federal Reserve ending QE2 on time. It is currently scheduled to end in June.