NEW: Goldman Sachs says Fed rate "hike" in September is "very unlikely"

What happened

Goldman Sachs analysts said a Federal Reserve rate hike in September is very unlikely, indicating they expect the Fed to leave the policy rate unchanged at its September meeting.

Confirmed

Global impact / market context

If rates stay steady, borrowing costs for businesses and consumers remain stable, supporting investment and spending. A pause also reduces pressure on financial markets, keeping in the stock valuations and bond yields from sharpening sharply.

Analyst inference

The Fed’s July decision left rates unchanged, and markets have priced in limited further tightening. Goldman’s view aligns with recent data showing slowing inflation, suggesting a broader expectation that monetary policy will remain accommodative through year‑end.

Analyst inference

What to watch

1. Follow upcoming US inflation reports; a rise could revive rate‑hike expectations, while weaker numbers would bolster confidence in a continued policy pause. Analyst inference
2. Watch Fed Chair statements at the September meeting; any hint of tightening bias would shift market pricing and could lift bond yields. Analyst inference
3. Monitor Goldman Sachs equity and fixed‑income strategy updates; if they revise outlooks, it may signal broader investor sentiment changes affecting stock and bond positions. Analyst inference

Evidence

• x.com