On October 1, Goldman Sachs stated that the inflation data released by the U.S. on Wednesday, along with remarks made by New York Fed President John Williams yesterday, led them to believe that a rate hike by the Federal Reserve in October is now unlikely. Economists Jan Hatzius, David Mericle, and Alec Phillips noted in a research report that based on the latest inflation report, the core PCE year-over-year growth rate is expected to be 3.0% in the fourth quarter, significantly lower than the FOMC participants' median forecast of 3.4%. As a result, the bank has postponed its expectation for the second rate hike to December, while also considering the possibility that the FOMC will ultimately determine that no further rate hikes are necessary.
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