Goldman Sachs Updated Its Forecast for the Fed’s October Interest Rate Decision Following Recent Developments - Cryptonews.net

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 (PCE) price index for August fell to 3.0% year-on-year, below the market expectation of 3.3%. Headline PCE inflation also came in at 3.4%, below the expected 3.7%. Goldman Sachs forecasts core PCE inflation to be around 3.0% year-on-year in the fourth quarter, while the median estimate of Fed officials is 3.4%.