Goldman Sachs pushes Fed rate hike forecast to December
Economic Times 1 hr ago·1 Oct 2026, 4:14 am
Goldman Sachs has adjusted its outlook for US interest rates, now predicting that the Federal Reserve will delay its next hike until December rather than October. This shift follows the release of softer-than-expected inflation data for August, which showed the personal consumption expenditures price index rising 3.4% annually. This figure came in below market expectations, suggesting that price pressures might be easing.
For investors, this news is significant as it signals a potential slowdown in the pace of monetary tightening. A December rate hike implies that the Fed is more cautious about the economy's health. Consequently, global markets are reacting to this shift, with investors closely monitoring upcoming economic indicators like the nonfarm payrolls report to gauge the strength of the labor market.
Excerpt from Economic Times
Goldman Sachs has revised its forecast for the next US interest rate hike from October to December. This change comes after lower-than-expected inflation data was released for August. The personal consumption expenditures price index increased 3.4% annually, falling short of economists' predictions. Market…Read the original at Economic Times
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- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
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