Goldman Sachs interprets the Federal Reserve decision: further rate hikes are barely avoidable, with inflation remaining the key variable

Golden Ten Data, June 18—Kay Haigh, an analyst at Goldman Sachs Asset Management, stated that today’s rate decision confirms the Federal Reserve’s recent hawkish shift is not solely tied to rising energy prices. Although oil prices have recently declined, half of the FOMC members expect a rate hike as early as this year, reflecting a robust labor market and inflation data. Our baseline assessment remains that the Federal Reserve can just about avoid raising rates, but the path is narrow and future inflation data will carry significant weight.