Goldman Sachs pushes next Fed rate-hike forecast to December
In short
Goldman Sachs moved its forecast for the next US interest rate hike from October to December. The change came after August inflation data was weaker than expected.
The personal consumption expenditures price index rose 3.4% a year, and traders are now waiting for Friday’s US nonfarm payrolls report. It is still unknown when the Fed will actually move.
What the reporting says
Goldman Sachs revised its forecast for the next US interest rate hike from October to December after August inflation data came in below expectations. The summary says the personal consumption expenditures price index rose 3.4% annually, and investors are now watching Friday’s US nonfarm payrolls report. The move changes market expectations, but the next Fed decision remains unknown.
Why it matters
Goldman Sachs pushed its forecast for the next US rate hike from October to December after August inflation data came in below expectations, including a 3.4% annual rise in the personal consumption expenditures price index. The update matters to markets because it shifts expectations for Federal Reserve policy. Investors are now focused on Friday’s nonfarm payrolls report, which could further influence rate bets.