Goldman Sachs: No Fed Rate Hike Expected in March
A significant shift in economic forecasting: Goldman Sachs no longer expects the Fed to raise interests in March. This prediction reverses earlier expectations and reflects growing concerns about stability within the financial sector.
Goldman Sachs is now predicting the Fed will not hike interest rates in March due to the stress in banking institutions. That would be a historic change of strategy. The market is reacting to the rapidly evolving situation, and major players like Goldman Sachs are adjusting their outlooks accordingly.
In a statement on Sunday, Goldman Sachs economist Jan Hatzius said he no longer expects a rate hike in March following recent actions from the federal agencies. The move follows concerns raised after the collapse of some financial institutions. In light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22, Goldman economist Jan Hatzius said.
Goldman Sachs' analysts on Sunday said they no longer expect the U.S. Federal Reserve to deliver a rate hike at its March 22 meeting with considerable uncertainty. Analysts at Goldman Sachs on Sunday said it “no longer expects” the Federal Reserve to hike interest rates later this month, after federal regulators moved to swiftly address the issues.
The initial expectation was that the Fed would continue its policy of raising interest rates to combat inflation. However, the current instability has forced a reevaluation. Goldman Sachs no longer expects the Federal Reserve to hike interest rates at its March meeting, citing “stress in the banking system” following the collapse of certain institutions, prompting a re-think of monetary policy.
Stay tuned for updates as the situation unfolds. Economists at Goldman Sachs no longer expect the U.S. Federal Reserve to raise interest rates in June, according to a research note published on Wednesday. This suggests that the concerns within the banking system could have a longer-term impact on the Fed's strategy.