Fed Rate Hike Forecast Shifted to October: Goldman Sachs

Goldman Sachs has revised its interest rate hike forecast for the US Federal Reserve. The bank now expects the Fed to raise interest rates by 25 basis points at its October policy meeting.

In a note, Goldman Sachs said that October is the most likely time for the next move because it would allow the Fed to deliver hikes in support of a timely return to the 2% inflation target at consecutive meetings.

This represents an update to Goldman Sachs' previous forecast, which predicted a rate hike in September. The bank's new expectation adds another potential interest rate increase to its earlier prediction.