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Goldman Sachs Now Expects Fed to Raise Rates 25bps in September

Goldman Sachs now expects the Federal Reserve to raise interest rates by 25 basis points at its September policy meeting, reversing its earlier forecast for rates to stay unchanged. The bank said the shift was driven less by the economic outlook than by financial-market pricing, with investors now broadly expecting a hike.

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AI take

The notable part is the stated reason: a major bank revising its call not because its economic view changed, but because market pricing did. That is a reminder that policy expectations can become self-reinforcing once positioning and forecasts align, which matters for rate-sensitive corners of crypto and RWA markets that trade off the front end. Whether this is genuine convergence or a forecast chasing the tape is the open question to watch.

Generated by AI for reference only.

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