Goldman Sachs Ditches Rate Hike Expectations Amid Inflation Slowdown

Goldman Sachs has revised its expectations for US interest rates, no longer predicting a rate hike in October. The investment bank now believes that any second increase will be pushed back to December.

A recent slowdown in inflation has caught economists off guard, with the core PCE index falling to an annualized 3% in August, below market and Fed expectations. This decline comes as the US 10-year bond yield reached a 15-year high of 5.29%, surpassing levels seen before the 2007 financial crisis.

The inflation slowdown has significant implications for the cryptocurrency market, particularly Bitcoin. As investors reassess their risk tolerance and adjust to changing interest rate expectations, the performance of digital assets may be affected.