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Goldman Sachs now expects a Fed rate hike in October, not just September

Goldman Sachs now expects the Federal Reserve to raise rates by another 25 basis points in October, after the central bank’s hawkish signal on Wednesday. Chief US economist David Mericle wrote that the FOMC will hike again in October, whereas the firm had previously forecast September as the only increase. Two consecutive hikes would help inflation return to the 2% target “more promptly,” Mericle said.

Original source

AI take

The shift matters less for the September move than for what it implies about the Fed's reaction function: a second hike is now being framed as the faster route back to the 2% target, which suggests the bar for pausing has risen. For crypto and RWA markets, the relevant channel is the duration of restrictive policy rather than any single meeting, since tighter-for-longer expectations weigh on risk appetite and on the discount rates applied to yield-bearing tokenized assets. Whether other sell-side houses follow Goldman in adding an October hike is the open question.

Generated by AI for reference only.

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