{"id":18692,"date":"2023-03-14T02:37:41","date_gmt":"2023-03-14T02:37:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/goldman-sachs-now-expects-no-rate-hike-in-march-due-to-stress-in-us-banking-system-economics-bitcoin-news\/"},"modified":"2023-03-14T02:37:41","modified_gmt":"2023-03-14T02:37:41","slug":"goldman-sachs-now-expects-no-rate-hike-in-march-due-to-stress-in-us-banking-system-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/goldman-sachs-now-expects-no-rate-hike-in-march-due-to-stress-in-us-banking-system-economics-bitcoin-news\/","title":{"rendered":"Goldman Sachs Now Expects No Rate Hike in March Due to Stress in US Banking System \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Goldman Sachs has revised its U.S. interest rate forecast due to \u201cstress in the banking system.\u201d The global investment bank no longer expects the Federal Reserve to raise interest rates at its Federal Open Market Committee (FOMC) meeting in March after the central bank announced measures to rescue depositors of failed Silicon Valley Bank and Signature Bank.<\/strong><\/p>\n

Goldman Sachs Revises Rate Hike Forecast<\/h2>\n

Global investment bank Goldman Sachs has revised its interest rate hike prediction for the upcoming Federal Open Market Committee (FOMC) meeting in March. In a note to clients on Sunday, the bank\u2019s economists, led by its chief economist Jan Hatzius, detailed:<\/p>\n

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In light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22.<\/p>\n<\/blockquote>\n

Last month, the FOMC increased the federal funds rate by 25 basis points to a target range of 4.5% to 4.75%, the highest since October 2007.<\/p>\n

Goldman revised its forecast shortly after the Treasury Department, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) announced<\/a> rescue measures for depositors of two failed banks. Regulators shut down Silicon Valley Bank<\/a> on Friday and Signature Bank<\/a> on Sunday. In addition, the Federal Reserve Board said<\/a> Sunday that additional funding will be made available to eligible depository institutions.<\/p>\n

Commenting on the Treasury Department\u2019s decision to designate failed Silicon Valley Bank and Signature Bank as systemic risks and the Federal Reserve\u2019s establishment of a new Bank Term Funding Program to support institutions affected by subsequent market instability, the Goldman Sachs economists explained:<\/p>\n

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Both of these steps are likely to increase confidence among depositors, though they stop short of an FDIC guarantee of uninsured accounts as was implemented in 2008.<\/p>\n<\/blockquote>\n

The economists further noted that they still expect the Fed to raise interest rates by 25 basis points<\/a> in May, June, and July, with a terminal rate expectation of 5.25% to 5.5%.<\/p>\n

Do you think the Fed will raise interest rates at its March meeting next week? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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