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Goldman Sachs has revised its outlook to expect the Federal Reserve to raise interest rates by a quarter percentage point at its next meeting, a move that comes as a surprise shift from the bank's recent forecasts.
In a note obtained by TheStreet, Goldman Sachs Chief Economist David Mericle stated that the bank now anticipates this increase at the October 27-28 FOMC meeting.
This prediction follows the central bank's unanimous 12-0 decision on Sept. 16 to lift the benchmark Federal Funds Rate to a range of 3.75% to 4%, a move that was widely anticipated by market participants.
The recent tightening reflects a renewed hawkish push by the Fed in response to persistent price pressures. These pressures are fueled by rising energy costs stemming from the Iran War and related geopolitical shocks.
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