Goldman Sachs: Fed Likely to Avoid Rate Hikes This Year, But Inflation Data Is Key

According to Goldman Sachs analyst Kay Haigh (via Jin10), today's Federal Reserve rate decision confirms the central bank's recent hawkish shift is not solely tied to energy prices. Despite recent oil price declines, half of FOMC members now expect rate hikes as early as this year, reflecting strong labor market data and inflation concerns. Goldman Sachs maintains its base case that the Fed can narrowly avoid rate increases, but the path remains narrow, with future inflation data carrying significant weight in determining policy direction.
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