Goldman Sachs: Expects the Fed to raise rates for the last time in December; does not rule out another hike in March next year if inflation exceeds expectations

Goldman Sachs released a research report stating that, consistent with the compromise of raising rates at every other meeting, the Federal Open Market Committee (FOMC) kept the federal funds rate unchanged at its October meeting held overnight (the 28th); the bank continues to expect a second and final rate hike in December, bringing the target range for the federal funds rate to 4% to 4.25%, but if inflation exceeds expectations, a third hike in March next year remains possible. The bank noted that Chair Warsh made balanced comments, pointing out that although the economy and labor market remain strong, inflation expectations are moving in the right direction, and recent policy tightening has begun to take effect. In addition, Warsh announced that the policy working group will submit a report before the end of the year for review in the first quarter of 2027, and that the future schedule will devote certain meetings entirely to broad monetary strategy without holding a federal funds rate vote.