NEW YORK: Goldman Sachs forecast a 25-basis-point Federal Reserve rate increase in March on Tuesday after hotter-than-expected October inflation data prompted it to change its call for an end to the hiking cycle in December.
The US lender joins Deutsche Bank, which expects an additional quarter-point rate hike in January on top of increases in December and March.
Tuesday's inflation data marked a third consecutive month of upside surprises, with markets fully expecting a 25-basis-point hike on December 9, per CME FedWatch.
Inflation has been rising on the back of higher oil prices amid the Iran war, US President Donald Trump's import tariffs, resilient consumer demand and robust AI investment.
