On Our "Virtual Route 99" On the Fed Courtesy Goldman Sachs
Why Goldman Sachs Research Expects the Fed to Remain on Hold in 2026 Ahead of this week’s Federal Open Market Committee (FOMC) meeting, markets were signaling the most uncertainty in three decades about whether policymakers would hike, according to David Mericle , chief US economist in Goldman Sachs Research. In the end, the meeting was “somewhat anticlimactic,” Mericle writes in a report. The FOMC held rates steady but issued no guidance on the future direction of rates and no details on the committee’s interpretation of the impact of inflation. “ We had expected that most FOMC voters would not want to hike because the June inflation data showed substantial improvement relative to prior months, ” Mericle writes. Kevin Warsh, who became chairman of the Federal Reserve in May, made several comments in his press conference after the FOMC meeting that Goldman Sachs Research interpreted as dovish, Mericle writes. Warsh appeared to downplay artificial intelligence-related price pressu...
