Goldman Sachs Shifts Stance to Predict Fed Rate Hike

Goldman Sachs has reversed its previous forecast and now expects the Federal Reserve to raise interest rates by 25 basis points at the upcoming FOMC meeting, aligning with market consensus. Economists remain divided; some argue the hike is merely to appease Wall Street futures pricing, while others, such as KPMG's Diane Swonk, warn that persistent inflation in core services could necessitate three additional hikes by early 2027. Bitcoin prices have dipped approximately 3% as markets brace for potential liquidity tightening.