Goldman Sachs now sees Fed hiking again in October
SYDNEY: Goldman Sachs now expects the US Federal Reserve to raise interest rates by 25 basis points at its October policy meeting, adding a further hike to its September call. In a note, the Wall Street bank said October was the most likely time for the next move, because it was most natural to deliver hikes that the Fed presented as supporting “a timelier return” to the 2% inflation target at…
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.
Also reported by 2 other outlets
- Goldman pivots, now forecasts Fed rate hike in October coindesk.com
- Goldman Sachs now sees Fed hiking again in October investing.com
