Goldman Sachs pushes rate hike expectation to December

Goldman Sachs has revised its Federal Reserve rate hike forecast, now expecting a December hike instead of the previously anticipated October. This shift was prompted by the core PCE price index rising 0.25% in August, below expectations, and the year-over-year rate settling at 3.01%, also lower than forecasts. The investment bank's downward revision to year-over-year core PCE growth to 3.0% is attributed to methodological changes, largely reflecting a larger revision to the portfolio management component.

Goldman Sachs' new forecast suggests an unlikely October rate hike, with the firm believing the FOMC may ultimately conclude that additional rate hikes are unnecessary.

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