ChainCatcher report: According to Goldman Sachs, the Federal Reserve is expected to pause rate hikes at its October meeting but may implement the final hike of this cycle in December. Goldman Sachs notes that financial conditions have tightened by approximately 30 basis points since September—a magnitude insufficient to replace further rate hikes—and warns that markets should not interpret this tightening as a signal that the hiking cycle is nearing its end. Goldman Sachs anticipates that U.S. inflation will improve by 2027, as the impacts of tariffs, energy shocks, and AI-related price pressures gradually fade; under its baseline scenario, the Fed will not hike rates in March 2027. However, if escalating tensions in the Middle East push oil prices higher and inflationary pressures persist, the subsequent policy path could still change.
Goldman Sachs Predicts Fed to Hike Rates in December 2026
ChaincatcherShare
Summary
Goldman Sachs said the Fed may pause in October but raise rates in December 2026. Financial conditions have tightened by 30 bps since September, but this is insufficient to end the tightening cycle. The firm expects inflation to ease by 2027 as tariffs and energy shocks subside, with no rate hike projected for March 2027 under the baseline scenario. However, an escalation in the Middle East could push oil prices higher and delay policy shifts. Meanwhile, MiCA is expected to reshape EU crypto markets, while CFT measures remain critical to global financial oversight.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.