Goldman pivots, now forecasts Fed hike in October

Goldman Sachs now expects the Federal Reserve to raise interest rates again in October.The Fed raised its benchmark rate Wednesday and Chair Kevin Warsh struck a hawkish tone.Goldman Sachs now expects the Federal Reserve to raise its benchmark interest rate again in October, a 180-degree pivot from its earlier call for a September hike followed by a pause.The shift comes after the Fed on Wednesday lifted rates by 25 basis points to a 3.75%–4.00% target range. The central bank’s updated rate projections revealed a strong majority of policymakers expecting at least one more increase this year.At the post-meeting press conference, Fed Chair Kevin Warsh struck a hawkish tone, saying inflation remains “too high” and that the latest hike merely removed a “dose of accommodation,” implying policy is still not restrictive enough and more rate hikes may be in the pipeline. As of this writing, traders are pricing just over 50% chance of another 25 basis points hike in October, according to the CME’s FedWatch tool. Bitcoin continues to trade near $76,260, up just 0.5% on a 24 hour basis. 12345678910