Goldman Sachs has raised their forecast of the Federal Open Market Committee’s (FOMC) rate hike in September to +75 basis points (from +50).
Goldman Sachs has forecasted that the Federal Open Market Committee (FOMC) will raise rates by 50 basis points (bp) in September. However, they have recently revised this prediction to say that the FOMC will actually raise rates by 75bp.
The Federal Reserve is expected to raise interest rates by 0.50 basis points in November, followed by another 0.25 basis point hike in December – which would take the funds rate to 3.75-4% by the end of the year. This is according to Goldman Sachs, who also cites that officials have recently sounded hawkish and implies that there is not as much progress being made when it comes to taming inflation.
The Wall Street Journal reported today that the FOMC is most likely planning to raise interest rates by 0.75 percentage points at the next meeting in September. This suggests that the Fed leadership is leaning towards a 75bp hike, which would delay their plans to slow down.
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