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      After PCE, Goldman Sachs "tears up report": No longer predicts Fed rate hike in October, next one may be December

      PANews, October 1 - Goldman Sachs has pushed back its forecast for the Federal Reserve's next rate hike from October to December, citing weaker-than-expected recent inflation data that has cooled market bets on the Fed continuing to tighten policy in the near term. The firm had previously expected the Fed to raise rates by another 25 basis points in October, but its latest assessment suggests the central bank may need more time to evaluate economic data.

      In its latest report, Goldman Sachs said it has adjusted the timing of the second rate hike from October to December, while also believing the Federal Open Market Committee (FOMC) may ultimately conclude that further hikes are unnecessary.

      Goldman Sachs believes that if subsequent inflation data continues to moderate, the Fed may ultimately decide no further rate hikes are needed. However, if energy prices, demand, or other factors push inflation pressures back up, the policy path could still be adjusted.


      Source: PANews
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