Goldman Sachs forecasts three Fed hikes, first cut delayed to Dec 2027
Goldman Sachs said on 11 November that it had raised its forecast for Federal Reserve policy to three rate hikes this cycle and pushed the first rate cut back to December 2027 after October CPI data came in above expectations. Earlier in the week, economists had expected a modest 0. 3% month-over-month rise in the consumer price index for October, with core inflation up 0. 2%, as gasoline prices fell, according to NBC News.
Subsequent reports from CNBC and Reuters showed the CPI actually rose 0. 4% and core CPI 0. 3%, outpacing forecasts and keeping inflation above the Fed’s 2% target. Federal Reserve Governor Christopher Waller and Dallas Fed President Lorie Logan indicated that the inflation pressure could warrant a 50-basis-point hike at the December meeting, and The Age noted that the Fed was likely to raise rates again despite President Trump’s calls for cuts.
