Goldman Sachs Asset Management Sees Fed Resuming Rate Hikes in December
Summary
- Goldman Sachs Asset Management said the Federal Reserve is expected to resume benchmark interest rate hikes in December.
- CIO Kay Haigh said the prospect of further tightening is supported by a stronger-than-expected September inflation rate and still-elevated price pressures.
- He said the Fed could pursue additional tightening in 2027 as well, depending on higher energy prices or strong economic data.
Forecast Trend Report by Period
Goldman Sachs Asset Management expects the Federal Reserve to resume raising interest rates in December, Walter Bloomberg reported on October 28. The firm said a stronger-than-expected September inflation reading supports the case for further tightening.
Kay Haigh, chief investment officer for fixed income at Goldman Sachs Asset Management, expects the Fed to raise rates in December, according to the report.
Earlier on October 28, the Fed left its benchmark rate unchanged at 3.75% to 4.00%. Haigh said September inflation came in above expectations and that price pressures remain elevated.
He added that the Fed could tighten further in 2027 if energy prices rise further or economic data comes in stronger than expected.
