Goldman Sachs Asset Management still does not expect the Federal Reserve to enter a sustained rate-hike cycle
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AT A GLANCE
Goldman Sachs Asset Management believes the Federal Reserve is unlikely to continue raising rates, but the dot plot and market pricing still indicate expectations of rate hikes this year.
Article
Goldman Sachs Asset Management: The Federal Reserve is unlikely to enter a sustained rate-hiking cycle
PANews September 24 reported, citing Jin10, that Goldman Sachs Asset Management said in a report that it still does not expect the Federal Reserve to enter a sustained rate-hiking cycle. The institution said: “We believe that tariff- and energy-related price pressures may fade, the economy shows few signs of overheating, and inflation expectations remain anchored.” The Federal Reserve’s dot plot from last week’s meeting showed one more rate hike this year. According to LSEG data, money-market pricing indicates that the cumulative rate hikes at the Federal Reserve’s remaining two meetings this year will total 37 basis points.
PANews said the information came from a Jin10 report.
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Goldman Sachs Asset Management said in a report that it still does not expect the Federal Reserve to enter a sustained rate-hike cycle.
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Goldman Sachs Asset Management believes that tariff- and energy-related price pressures may fade, the economy shows few signs of overheating, and inflation expectations remain anchored.
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The report said the Federal Reserve’s dot plot from last week’s meeting showed one more rate hike this year.
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The report cites LSEG Data indicating that money-market pricing shows the Federal Reserve will cumulatively raise rates by 37 basis points.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This news expresses Goldman Sachs Asset Management’s assessment of the interest-rate path: it believes that current prices and economic conditions are insufficient to support a continuous series of rate hikes. However, this does not mean there will be no further rate hike, because the dot plot and money-market pricing cited in the report still retain expectations of a rate hike within the year.
Why it matters to readers
Whether rate hikes continue will affect the market's assessment of the future interest-rate environment. The report also presents institutional views, the dot plot, and market pricing, indicating that the various signals are not entirely consistent.
Beginners should distinguish between “not entering a sustained rate-hike cycle” and “not hiking rates at all”: the former may still include a single rate hike. Market pricing also reflects traders’ expectations, not a policy decision that has already been determined.
Risks and unknowns
The news was relayed by PANews and Jin10; the full Goldman Sachs Asset Management report was not provided in the original text.
The original text did not provide the Federal Reserve’s dot plot or LSEG the original source material for the data.
The price pressures easing referred to by Goldman Sachs Asset Management is an assessment; it cannot yet be confirmed from this article whether it will occur.
Market pricing does not mean that the Federal Reserve will necessarily raise rates by a cumulative 37 basis points.
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The original text only states September 24, last week, and this year, without clearly specifying the corresponding years.
Related concepts
Continued rate-hike cycle
This term is not in the glossary yet. Browse related concepts in the glossary.
