Goldman Sachs’ interpretation of the Federal Reserve’s decision: just barely able to avoid rate hikes, with inflation as the key variable

Golden Finance reports that on June 18th, Goldman Sachs Asset Management analyst Kay Haigh stated that today's interest rate decision confirms that the recent hawkish shift by the Federal Reserve is not solely related to rising energy prices. Although oil prices have recently fallen back, half of the FOMC members expect the first rate hike as early as this year, reflecting a strong labor market and inflation data. Our basic assessment remains that the Federal Reserve can barely avoid raising interest rates, but the path is narrow, and future inflation data will carry significant weight.
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