Goldman Sachs pushes Fed rate hike forecast to December
The bank now sees a strong chance the Federal Open Market Committee will skip another hike, citing softer core Personal Consumption Expenditures inflation and weaker October odds.
- Federal Reserve Governor Barr warned at the Detroit Economic Club on Monday that inflation risks remain elevated, while CME FedWatch odds for an October rate hike fell sharply from 70.9% to 49.3% by Tuesday.
- Goldman Sachs delayed its forecast for a second interest rate hike from October to December after August Personal Consumption Expenditures price index data rose 3.4%, below the 3.7% economist estimate.
- New York Fed President John Williams stated there is "no urgency" to follow September's move with an immediate second hike, emphasizing the central bank should weigh data before deciding on timing.
- Market participants are now focused on the crucial September nonfarm payrolls report due Friday, October 2, with the Bureau of Labor Statistics releasing data at 8:30 a.m. Eastern Time.
- Amid changing rate expectations, American crypto investors saw $2.39 billion in net inflows into spot Bitcoin ETFs between September 21 and 25, while WTI oil traded above $93 per barrel.
14 Articles
14 Articles
Goldman Sachs shifts second Fed hike forecast to December
Goldman Sachs has delayed its forecast for a second Federal Reserve rate hike from October to December after August core PCE inflation came in near 3%, below expectations. Goldman Sachs has revised its rate forecast following the September 30 inflation…
Goldman Sachs has shifted its forecast for the Federal Reserve's next interest rate hike from October to December following weaker-than-expected inflation data from the US. The bank stated that the latest data significantly reduces the likelihood of a rate hike at the October meeting, while also strengthening the possibility that the Fed may not need any further hikes for the remainder of the year. The core personal consumption expenditures data…
Key points of the news Inflation data: August's CPE figures turned out to be softer than expected, reducing market expectations about an increase in rates by the Federal Reserve in October and improving confidence towards risk assets. Market reaction: Bitcoin remained stable close to the Federal Reserve in ... Read more
🏦 Goldman Sachs no longer sees a Fed rate hike in October as likely; it has postponed its expectation of a second hike to December. 📉 In August, core PCE's annual increase fell to 3%, below market and Fed expectations. 📈 The US 10-year Treasury yield rose to 5.29%, its highest level since 2007. Read More: Inflation Slows, Forecasts Change: What Awaits Bitcoin? The article "Inflation Slows, Forecasts Change: What Awaits Bitcoin?" first appeare…
Analysis: Democratic Fed governor admits economy is roaring under Trump, and he hates it
Democratic Federal Reserve Gov. Michael S. Barr said Tuesday the economy is gaining momentum with resilient consumers, strong business investment and a capital-spending boom driven by artificial intelligence. He then admitted the Fed is moving to kill the growth even as core inflation is at its lowest level since before the Biden affordability crisis struck. […]
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