Goldman Sachs Asset Management: The Fed is unlikely to keep hiking
Goldman Sachs Asset Management said the Fed is unlikely to enter a sustained rate-hiking cycle. The firm believes that pressure from tariffs and energy prices may ease, there are no signs of an overheating economy, and inflation expectations remain anchored. The Fed’s dot plot shows one more rate hike this year, while money market pricing indicates that the remaining two meetings will result in a cumulative 37 basis points of rate hikes.
Goldman Sachs Asset Management said the Fed is unlikely to enter a sustained rate-hiking cycle. The firm believes that pressure from tariffs and energy prices may ease, there are no signs of an overheating economy, and inflation expectations remain anchored. The Fed’s dot plot shows one more rate hike this year, while money market pricing indicates that the remaining two meetings will result in a cumulative 37 basis points of rate hikes.