Goldman Sachs baseline Fed Funds rate forecast is above the Federal Reserve's

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Goldman Sachs baseline Fed Funds rate forecast is above the Federal Reserve's

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</p><ul><li>Goldman Sachs discusses its new Fed call in light of yesterday's FOMC policy decision. </li><li>"The FOMC raised the funds rate by 25bp today to 4.75-5%, against our expectation of a pause, but projected a weak economic outlook for the rest of 2023 and a more cautious path for the funds rate than Chair Powell had indicated was likely before the recent banking turmoil," GS notes. </li><li>"We have left our forecast for the peak funds rate unchanged at 5.25-5.5% and now expect additional 25bp rate hikes in May and June. Our baseline forecast is 25bp above the FOMC's forecast of 5-5.25%,  and our weighted-average path for the funds rate is above market  pricing " GS adds. </li></ul><p>---</p><p>Passing this on as an update, GS with the call yesterday. </p><p>Graph from Trading Economics:</p>

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Goldman Sachs baseline Fed Funds rate forecast is above the Federal Reserve's

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