This is via the folks at eFX.
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- Goldman Sachs discusses its new Fed call in light of yesterday's FOMC policy decision.
- "The FOMC raised the funds rate by 25bp today to 4.75-5%, against our expectation of a pause, but projected a weak economic outlook for the rest of 2023 and a more cautious path for the funds rate than Chair Powell had indicated was likely before the recent banking turmoil," GS notes.
- "We have left our forecast for the peak funds rate unchanged at 5.25-5.5% and now expect additional 25bp rate hikes in May and June. Our baseline forecast is 25bp above the FOMC's forecast of 5-5.25%, and our weighted-average path for the funds rate is above market pricing " GS adds.
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Passing this on as an update, GS with the call yesterday.
Graph from Trading Economics:
