Goldman Sachs · OpenAI · Sam Altman · Federal Reserve (FED) · Wall Street · CoinDesk
Fed rate hike is about Wall Street, not inflation, confirms economist
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A Federal Reserve rate hike next Wednesday, likely 25 basis points, is universally expected at this point.
Key facts
- Tokenized equities lead RWA inflows as the market recovers; Binance's bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume
- Based on the CPI data, the PCE Index, which is the Fed’s preferred inflation gauge (not CPI), is likely to be higher by 0.4% in August, with core up 0.3%, she added — It was two years ago, in September 2024, that the Fed embarked on a rate-cutting cycle with annual core CPI running at well over 3%
- A Federal Reserve rate hike next Wednesday, likely 25 basis points, is universally expected at this point
Summary
Maybe the last of the holdout banks on Wall Street, Goldman Sachs now expects the Fed to hike rates 25 basis points on Wednesday. Any policy tightening will be about pleasing Wall Street, not about cutting inflation, said market strategist James Thorne. Diane Swonk disagreed, saying the inflation picture is worsening more than the core CPI number showed. One of the last holdouts on Wall Street, Goldman Sachs, late Friday, rescinded its forecast that the Fed would stay on hold next week.