Goldman Sachs Flips Fed Call Twice in Four Days, Now Sees October Hike
GS sits 29% above its 52-week low of $740.01.
Summary
Goldman Sachs reversed its Federal Reserve forecast twice in four days, shifting from expecting a single isolated rate hike to predicting a second increase as soon as October. The pivot followed the Fed's September 16 decision to raise rates by 25 basis points to 3.75%-4.00%, its first hike since 2023, and a dot plot showing 16 of 18 officials expect at least one more increase this year. The bank's revised call aligns with market pricing, as CME FedWatch odds of an October hike climbed above 50%. Bitcoin's muted 0.5% gain to around $76,000 suggests the September hike was largely priced in, but the prospect of sustained tightening could pressure risk assets if October delivers another increase. This forecast reversal is notable for Goldman's macro influence, though it does not directly alter the firm's earnings outlook.
At the time of this announcement, GS was trading at $953.75 on NYSE in the Finance sector, with a market capitalization of approximately $277.7B. The 52-week trading range was $740.01 to $1,153.99. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Crypto Briefing.