Federal Reserve: Expect no rate hike in March – Goldman Sachs

Dhwani Mehta FXStreet

The US Dollar has come under renewed selling pressure in Asia this Monday after Goldman Sachs revised downward its expectations of the US Federal Reserve (Fed) rate hike outlook, in the face of the Silicon Valley Bank (SBV) fallout.

Key quotes

"In light of recent stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its March 22 meeting with considerable uncertainty about the path beyond March."

“We expect US regulators' actions to provide significant liquidity to banks facing deposit outflows and to boost depositor confidence.”

“Goldman Sachs now predicts -

March on hold

May +25 bps

June +25 bps

July +25 bps

Terminal rate forecast at 5.25 - 5.50%.”

“We see a lot of uncertainty about the path of rate hikes after March.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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