Goldman Says Macro Risks Are Back in Focus as Markets Price a More Hawkish Fed Path
JH Kim
Summary
- Goldman Sachs said investor focus is shifting toward macroeconomic risks, including oil-price volatility, inflation, and high interest rates.
- Goldman Sachs said it expects the Fed to hold interest rates steady, even as markets price in a more hawkish monetary-policy path.
- Goldman Sachs said it raised its corporate default forecasts for the US and Europe and maintained an underweight rating on credit markets.
Forecast Trend Report by Period
Walter Bloomberg reported on July 27 that Goldman Sachs sees rising oil-price volatility shifting investor attention away from corporate earnings and toward macroeconomic risks including inflation and high interest rates.
Goldman expects the Federal Reserve to hold interest rates steady this week. Even so, markets are pricing in a more hawkish monetary-policy path than before, the firm said.
The bank also raised its forecasts for corporate defaults in the US and Europe. It maintained an underweight rating on credit markets.
JH Kim
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