Fed will pause interest rates this week, Goldman Sachs forecasts


In a note published Monday morning, Goldman Sachs economist David Mericle forecast the Federal Reserve will not lift interest rates at this week’s meeting due to banking system stress.  “While policymakers have responded aggressively to shore up the financial system, markets appear to be less than fully convinced that efforts to support small and midsize banks will prove sufficient,” he said in a note to clients. Mericle said the link between a single quarter-point hike and future inflation is “very tenuous” and that the Fed can get back on track with hikes very quickly. The bank is still expecting quarter-point increases in May, June and July. The yield on the 2-year Treasury fell 6 basis points to 3.77%.

This article was originally published by Marketwatch.com. Read the original article here.

Previous article: Wedbush upgrades NY Community Bancorp on ‘sweetheart deal’ for Signature Bank assets
Next article: Foot Locker stock reverses early losses as it unveils plan to expand sneaker line and relaunch core brand


Please enter your comment!
Please enter your name here