Goldman Sachs Vice Chairman Rob Kaplan said the Federal Reserve may need to raise interest rates as soon as September if inflation remains elevated. Kaplan, a former Dallas Fed president, told Bloomberg TV that if inflation prints do not cool by September, the balance of risks suggests taking action in September or the fall would be wise. He added that Fed rate moves rarely occur as one-off actions, often coming in a series of two or three, so a September hike could be followed by one or two more. Kaplan also cautioned against reading too much into the Fed’s latest dot plot, saying it might not have reflected the US-Iran deal and reopening of shipping routes, and the outlook could look different by September.
Goldman Sachs Group IncRate hikes could tighten financial conditions, impacting Goldman's trading and investment banking revenues.
Citigroup Inc.Rate hikes increase borrowing costs, potentially slowing economic activity and reducing demand for banking services.