Goldman Sachs has indicated that the market may be overestimating the likelihood of another Federal Reserve rate hike, particularly as inflation in the U.S. has slowed to 4%. The bank's chief economist, Jan Hatzius, described a rate increase at the September meeting as "extremely unlikely," pointing to weak retail sales, disappointing employment data, and a decrease in inflation. According to Bloomberg, just a week prior, the market had fully priced in a 25 basis point hike for December, but expectations have now shifted to January 2027.
MacroInflationInterest RatesFederal Reserve
Goldman Sachs Deems September Fed Rate Hike Unlikely
Goldman Sachs suggests that a rate hike by the Fed in September is unlikely due to slowing inflation and weak retail sales.
Mercation Admin
August 17, 2026 1 min read