Goldman Sachs said it now sees an October rate hike by the U.S. Federal Reserve as unlikely after the latest U.S. inflation data released on Wednesday and remarks made a day earlier by New York Fed President John Williams. In a research note, Goldman economists Jan Hatzius, David Mericle, and Alec Phillips said the latest inflation report led them to expect fourth-quarter core PCE inflation to run at 3.0% year over year, well below the 3.4% median forecast from Federal Open Market Committee participants. Based on that view, the bank pushed its expectation for a second rate increase to December from October. Goldman also said there is a high probability that the FOMC will ultimately conclude that no further rate hikes are necessary. The shift marks a change in timing rather than a new policy forecast beyond what the bank explicitly outlined in its note.
Goldman Sachs said on Oct. 1 that it now considers a U.S. Federal Reserve rate hike in October unlikely, after inflation data released in the United States on Wednesday and comments made the previous day by New York Fed President John Williams.
In a research note, Goldman economists Jan Hatzius, David Mericle, and Alec Phillips said the latest inflation report points to fourth-quarter core personal consumption expenditures, or core PCE, rising 3.0% from a year earlier. That would be well below the 3.4% median forecast provided by Federal Open Market Committee, or FOMC, participants.
On that basis, Goldman pushed its expectation for a second rate hike to December from October. The bank also said there is a high probability that the FOMC will ultimately decide that no additional rate increases are needed.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
