Goldman Sachs has revised its outlook for the U.S. central bank, now projecting a further 25‑basis‑point increase to the Federal Reserve’s benchmark rate in October. The change marks a 180‑degree shift from the firm’s prior expectation of a September hike followed by a pause.
The Fed raised rates on Wednesday by 25 basis points, moving the target range to 3.75%‑4.00%. Updated policy projections showed a strong majority of Fed policymakers anticipating at least one more increase this year.
At the post‑meeting press conference, Fed Chair Kevin Warsh delivered a hawkish tone, noting that inflation remains "too high" and that the latest hike merely removed a "dose of accommodation," suggesting that policy is still not restrictive enough and that additional hikes could follow.
Traders are pricing just over a 50% probability of another 25‑basis‑point move in October, according to the CME Group’s FedWatch tool.
Bitcoin was quoted near $76,260, up about 0.5% over the previous 24 hours.
