Goldman Sachs has changed its Federal Reserve outlook and now expects a 25 basis point rate hike at the September 15–16 meeting, abandoning its previous forecast for no change.
The shift comes after the latest August consumer inflation data and stronger market expectations increased the possibility of further monetary tightening.
The Federal Open Market Committee (FOMC) is scheduled to announce its decision on September 16 at 2:00 p.m. Eastern Time, followed by a press conference from Fed Chair Jerome Powell at 2:30 p.m.
A quarter-point increase would move the federal funds target range from 3.50%–3.75% to 3.75%–4.00%. However, the Federal Reserve has not made a final decision, and market futures only reflect investor expectations rather than an official signal from policymakers.
A potential rate hike could increase pressure on Bitcoin and other risk assets, as higher interest rates typically support the dollar and bond yields while reducing investor appetite for higher-risk investments.
Markets are now closely watching the Fed’s decision and guidance on whether this would be a one-time adjustment or the beginning of a more prolonged tightening cycle.
