Key facts
- Goldman Sachs now expects the Federal Reserve to raise interest rates by 25 basis points at its September meeting.
- This reverses Goldman Sachs' previous forecast of no change in interest rates.
- The bank cited financial market pricing, where investors largely expect a rate increase, as the driver for the change.
Goldman Sachs has revised its outlook, now anticipating that the U.S. Federal Reserve will implement a 25 basis point interest rate increase at its upcoming September policy meeting. This marks a shift from its earlier projection that rates would remain unchanged.
The Wall Street bank indicated in a note on Friday that this adjustment was primarily influenced by financial market pricing, which largely reflects an expectation of a rate hike among investors, rather than a significant change in its own economic outlook.