Goldman Sachs changed its Fed forecast: Third rate hike is on the way

Goldman Sachs revised its Federal Reserve rate outlook after stronger-than-expected U.S. inflation data, keeping its forecast for a 25-basis-point rate hike in December while adding a third 25-basis-point increase to its projections for the March 2027 meeting. The change signals the bank now expects the Fed to tighten further than previously assumed as inflation proves stickier than anticipated. Investors will watch upcoming inflation prints and Fed communications for confirmation of the higher-for-longer path implied by Goldman's revised forecast.