Fed rate hike is about Wall Street, not inflation, says economist
60-second summary
Goldman Sachs reverses its “no‑hike” outlook, joining other banks in warning that the Federal Reserve may raise rates next week, a move economists say targets Wall Street liquidity rather than inflation control; the shift reflects concerns over tightening credit conditions, prompting traders to price higher yields and suggesting tighter monetary policy could pressure equity valuations and broader market sentiment.
Goldman Sachs late Friday became the last of the major banks to retract its forecast of no rate hike next week.