Goldman Sachs Investment Director: 50% chance the Federal Reserve will raise interest rates in July; the wealth effect of rising stock prices may become a reason for rate hikes

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Jinsecaijing reports that on June 24, Lindsay Rosner, Head of Multi-Industry Investment at Goldman Sachs Asset & Wealth Management, issued a latest warning saying the likelihood of the Federal Reserve raising interest rates in July is “quite high,” with a probability of 50%. In her latest interview, she noted that the upcoming inflation data—especially the Personal Consumption Expenditures report—is a key factor that could prompt the Federal Reserve to take action. Rosner also further pointed out that the wealth effect brought about by rising stock prices may be reflected in the inflation data, which could then become a reason for rate hikes. She said that items such as software and accessories in the personal consumption expenditure basket related to artificial intelligence spending are expected to rise in the next report, “forcing the Federal Reserve to respond.” Based on this, Goldman Sachs has adjusted its internal outlook, pushing the expected timing of rate cuts back to the end of 2027.
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