Three reasons Goldman has added another Fed tightening move to its forecast, higher and higher!
Pushing the first reduced to December 2027 extends the period of restrictive policy, which could weigh on long-duration assets. The reversal of Goldman's late-October call also reveals how much oil is driving the prospects: the Middle East escalation it flagged as a risk has fed…
In this article
On the Fed interest rates front, Pushing the first reduced to December 2027 extends the period of restrictive policy, which could weigh on long-duration assets, according to investingLive. The reversal of Goldman's late-October call also reveals how much oil is driving the prospects: the Middle East escalation it flagged as a risk has fed directly into the inflation data.
Key points
- The bank also pushed back its forecast for the first easing move by a quarter.
- On Tuesday, Goldman Sachs now projects the Federal Reserve to raise policy rates again in March 2027.
- With the federal funds target range at present at 3.75% to 4%.
- Goldman's revised prospects is broadly in line with Fed commentary this week.
Inside the Fed interest rates story
On Tuesday, Goldman Sachs now projects the Federal Reserve to raise policy rates again in March 2027, following a quarter-point hike in December, following a third consecutive month of hotter-than-expected inflation data, the bank's chief US economist David Mericle stated in a note. The bank also pushed back its forecast for the first easing move by a quarter, to December 2027. Goldman anticipates the run of firm inflation data to lead most Fed rate-setters to signal a third hike in the December dot plot, and noted a solid January inflation report would make delivering that hike the path of least resistance.
Goldman's revised prospects is broadly in line with Fed commentary this week. With the federal funds target range at present at 3.75% to 4%, December's decision and its latest forecasts will show whether officials are ready to signal the further tightening Goldman projects.
Why traders are watching Fed interest rates
Expectations for US interest rates sit behind almost every move in the dollar, bond yields and equities. When the outlook for Fed policy changes, traders reprice the whole curve of rate expectations at once.
A more hawkish tone usually supports the dollar and weighs on gold and growth stocks, while a dovish tilt tends to do the opposite. That is why traders read every comment from policymakers closely.
Market reaction and data
Crypto prices at the time of writing, from Binance spot data (2026-11-11 05:11 UTC):
| Asset | Last price (USDT) | 24h change | 24h high | 24h low |
|---|---|---|---|---|
| Bitcoin (BTC) | 73,726.00 | -1.51% | 74,996.01 | 72,727.27 |
| Ethereum (ETH) | 2,063.44 | -2.94% | 2,132.07 | 2,006.00 |
On the currency side, the latest ECB daily reference rates (2026-11-10) show EUR/USD 1.1214, GBP/USD 1.3423, AUD/USD 0.6904, NZD/USD 0.5628, USD/JPY 158.18, USD/CHF 0.8207, USD/CAD 1.4136, USD/CNY 6.6703. These are reference fixes, not live quotes.
What to watch next for Fed interest rates
Traders will focus on upcoming comments from Fed officials, the next inflation and labour-market releases, and pricing in rate futures for clues about the timing of the next policy move.
Key scheduled releases on the economic calendar:
- GBP GDP m/m on Thu Nov 12, 07:00 UTC, forecast 0.0%, previous 0.1%
- USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
- USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%
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FAQ
What is the latest Fed interest rates news?
Pushing the first reduced to December 2027 extends the period of restrictive policy, which could weigh on long-duration assets.
How do Fed rate decisions affect forex markets?
Higher US rates tend to attract capital into dollar assets and strengthen the greenback, while lower rates or dovish guidance usually weaken it against other major currencies.
Where does this information come from?
This report is based on coverage from investingLive, checked against market data where available. It is a summary for information only and not investment advice.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
