Goldman Sachs Forecasts Potential Delay in U.S. Fed Interest Rate Hike

• The strategists also highlight encouraging trends in inflation, which has been a key worry.
• The experts also note that economic growth is expected to decelerate in Q4.

One of the world’s most prestigious investment firms, Goldman Sachs, has suggested that November may not see an interest rate increase. The strategists at Goldman Sachs recently released a report outlining the several variables that have led them to expect an interest rate rise delay.

They emphasized the need for further rebalancing of the labor market before the Fed would contemplate increasing interest rates again. This indicates the Federal Reserve may be waiting for sustained improvements in employment statistics before raising interest rates.

The strategists also highlight encouraging trends in inflation, which has been a key worry recently. Goldman Sachs thinks there could be less urgency to raise interest rates soon in light of recent improvements in inflation statistics.

Investors Closely Awaiting Decision

The experts also note that economic growth is expected to decelerate in Q4. They pointed out that if growth were to slow that much, the Fed may decide to hold off on raising interest rates until it could evaluate the economy’s durability.

If inflation keeps falling next year, the analysts at Goldman Sachs predict lower interest rates. As a result of the economy’s resilience, they believe the Fed will increase its growth forecast to 2.1% in 2023 from 1% now.

Given the past record of monetary policy tightening, market investors are watching the Fed’s actions and words attentively. The crypto market has lately stabilized after severe bear dominance. The interest rate decision will definitely make a huge impact on both the conventional and crypto market.

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