Goldman Sachs: maintain the expectation that the Federal Reserve will raise interest rates by 25 basis points in May, June and July

According to reports, Goldman Sachs said that in view of the recent pressure of the banking system, it no longer expected the Federal Reserve to raise interest rates at the meeting on March 22. The expectation that the Federal Reserve will raise interest rates by 25 basis points in May, June and July remains unchanged, and the terminal interest rate is now expected to be 5.25-5.5%. (Golden Ten)

Interpretation of this information:

Goldman Sachs has made a statement regarding the Federal Reserve’s plans to raise interest rates. After the recent pressure on the banking system, it is believed that the Fed will not raise interest rates at the upcoming meeting on March 22nd. However, the bank still anticipates that the Fed will raise rates by 25 basis points in May, June, and July of this year. Additionally, the bank now predicts that the terminal interest rate for this cycle will be between 5.25% and 5.5%.

This announcement by Goldman Sachs carries significant importance for the financial industry as a whole. Interest rates play a critical role in shaping the financial climate both nationally and globally, and any shifts in rate trends can cause a ripple effect on the market. The fact that Goldman Sachs is forecasting a rise in interest rates later in the year despite the Fed’s postponement of a March increase suggests that they see a positive outlook in the future of the economy.

Furthermore, the announcement also signals Goldman Sachs’ confidence in the state of the banking system. Although there has been pressure recently, they still expect the system to regain balance and be able to withstand the Fed’s rate increases later in the year.

In summary, Goldman Sachs predicts that the Federal Reserve will not raise interest rates at the March 22nd meeting due to recent pressure on the banking system. However, the bank still expects a rate increase of 25 basis points in May, June, and July of this year. The bank predicts that the terminal interest rate will be between 5.25% and 5.5%.