Goldman Sachs: The chances of the Federal Reserve raising rates within the year are relatively low; the scale of the supply shock is small and limited

Gate News, on April 1, Goldman Sachs analysts said in a recent report that since the outbreak of the war between Israel and Iran, market pricing for the U.S. federal funds rate has seen sharp fluctuations, but the likelihood of rate hikes this year remains low. The analysts said that the current supply shock is smaller in scale and more limited than past shocks that triggered inflation problems, and that the increase in oil prices is also less than the levels seen in the 1970s. In addition, the analysts believe that the economy’s starting point makes it less likely that inflation will spill over broadly, and that the current monetary policy starting point also reduces the probability of rate hikes. Goldman analysts emphasized: “The Federal Reserve typically does not tighten policy solely in response to an oil shock.”

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