Goldman Sachs Revises Outlook, Now Expects October Fed Rate Hike

Goldman Sachs now anticipates another 25-basis-point increase in the Federal Reserve’s benchmark rate at its October meeting, reversing its earlier forecast for a September hike followed by a pause.

The revision follows the Fed’s Wednesday decision to raise rates by 25 basis points, placing the target range at 3.75%-4.00%. Its updated economic projections showed most policymakers expect at least one additional increase this year.

Speaking at a post-meeting press conference, Fed Chair Kevin Warsh sounded hawkish, saying inflation remained “too high.” He said the latest move simply removed “a dose of accommodation,” suggesting monetary policy was still insufficiently restrictive and further tightening remained possible.

According to the CME FedWatch Tool, traders currently assign a slightly greater than 50% probability to another 25-basis-point hike in October.

Bitcoin continued to trade near $76,260, reflecting a 0.5% gain over 24 hours.

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