Goldman Sachs Asset Management Sees Fed Resuming Rate Hikes in December
JH Kim
Summary
- Goldman Sachs Asset Management said it expects the Federal Reserve to resume benchmark interest rate hikes in December.
- CIO Kay Haigh said price pressures remain elevated, citing a higher-than-expected September inflation rate.
- He said the Fed could pursue additional tightening even in 2027 if energy prices rise further or economic data comes in stronger than expected.
Forecast Trend Report by Period
Goldman Sachs Asset Management expects the Federal Reserve to resume raising its benchmark interest rate in December, arguing that stronger-than-expected September inflation supports the case for further tightening.
Walter Bloomberg reported on October 28 that Kay Haigh, chief investment officer for fixed income at Goldman Sachs Asset Management, expects the Fed to raise rates in December.
Earlier that day, the Fed left its benchmark rate unchanged at 3.75% to 4.00%. Haigh said September inflation came in above expectations, indicating price pressures remain elevated.
He added that the Fed could tighten further in 2027 if energy prices rise more or economic data comes in stronger than expected.
JH Kim
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