Goldman Sachs forecasts three Fed hikes, first cut delayed to Dec 2027
Goldman Sachs said on 11 November that it now expects the Federal Reserve to implement three interest-rate hikes this cycle and to postpone the first rate cut until December 2027, after October CPI numbers exceeded forecasts. Earlier in November, NBC News reported economists expected a 0. 3% month-over-month rise in the CPI for October, with core inflation up 0. 2% as gasoline and diesel prices fell. CNBC later noted the Labor Department data showed the CPI actually rose 0. 4% and core CPI 0.
3%, outpacing forecasts. Reuters reported that the Labor Department confirmed the 0. 4% increase, keeping inflation well above the Fed’s 2% target. The Globe and Mail said the stronger CPI data sparked a surge in Treasury yields and heightened market expectations of a larger Fed hike in December. The Age added that the Fed was expected to raise rates again, contrary to President Trump’s calls for cuts.
