Goldman Sachs Group IncGoldman forecasts another 25bp Fed hike in October, which cuts both ways for its markets franchise and dealmaking.
Goldman Sachs now expects the Federal Reserve to raise rates by another 25 basis points in October, after policymakers lifted the target range to 3.75% to 4%, according to Reuters. The bank's shares slipped approximately 0.1% to $937.26 on the revised call. Sixteen of 18 Fed officials see at least one more increase this year, while four anticipate two. Goldman's forecast remains an economic call rather than a guarantee that policymakers will follow that path. For the bank, further tightening cuts both ways: higher volatility can drive more hedging, trading and risk-management activity through its markets franchise, but pricier financing can cool acquisitions, delay equity offerings and pressure asset valuations.
Goldman Sachs Group IncGoldman forecasts another 25bp Fed hike in October, which cuts both ways for its markets franchise and dealmaking.
Goldman expects the Fed to raise rates another 25bp in October, pushing the effective federal funds rate higher.
Expectation of further Fed tightening lifts the 10-year Treasury yield.