Goldman Sachs Douses Rate Hike Expectations with Cooler Inflation Data

Goldman Sachs has revised its forecast for US interest rate hikes, pushing back its prediction to December. The change comes after a softer-than-expected inflation reading raised doubts about the need for further rate increases. In September, the Federal Reserve hiked rates for the first time in three years, with the aim of tackling inflation.

The brokerage had previously predicted a 25-basis-point increase in October. However, Goldman Sachs now believes there's a strong chance that additional rate hikes may be unnecessary. This shift reflects the Fed's concerns about the potential impact of higher rates on economic growth.