Goldman Sachs Delays Fed Rate-Cut Call Amid Middle East War

Goldman Sachs has pushed back its forecast for a Federal Reserve rate cut amid the escalating conflict in the Middle East, according to a report by Investing.com ^[1].

The bank's decision comes as the war between Iran and the US has lifted inflation risks, prompting Goldman Sachs to reassess its expectations for a rate cut.

Inflation Risks Rise

The conflict in the Middle East has led to a surge in oil prices, which has increased inflation risks. This has prompted Goldman Sachs to delay its forecast for a rate cut, as the bank believes that the Fed may not be able to cut rates as quickly as expected.

Impact on Markets

The delay in Goldman Sachs' rate-cut forecast has had an impact on the markets, with gold prices falling on the news. The firm's decision has also led to a rise in the dollar, as investors become more confident in the US economy.

Conclusion

The delay in Goldman Sachs' rate-cut forecast is a significant development in the markets, and it highlights the impact of the conflict in the Middle East on the global economy. As the situation continues to unfold, investors will be closely watching the Fed's next move.

Sources

^[1] Goldman Sachs delays Fed rate-cut call as Middle East war lifts inflation risks (https://www.investing.com/news/economy-news/goldman-sachs-pushes-back-fed-rate-cut-forecast-amid-mideast-conflict-4556065)