Goldman Sachs now sees Fed hiking again in October

Goldman Sachs now expects the US Federal Reserve to raise interest rates again by 25 basis points at its October policy meeting. This forecast was made after the Fed raised its benchmark interest rate, the first hike since 2023, to combat inflation that has remained above its 2% target for more than five years.

The Fed's decision was influenced by persistent inflation and indications of a strengthening economy. According to Goldman Sachs, a rate hike in October would support a timely return to the 2% inflation target.

The rate hike has been met with criticism from Trump, who argues that interest rates should be lower. Higher interest rates can lead to increased borrowing costs for mortgages, car loans, and credit cards, while savers may benefit from improved returns on deposits.

Brief written by urgent.news from Business Recorder, Live Mint — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.