Goldman Sachs has adjusted its assessment of the U.S. interest rate path, predicting that the Federal Reserve will raise rates by another 25 basis points in October. Previously, the bank had believed that the rate hike in September would be the last in this cycle.

The tone of the meeting was more hawkish.

Goldman Sachs stated that the signals released from the latest Federal Reserve interest rate meeting were stronger than the market had initially anticipated, therefore it has raised its assessment of further policy tightening throughout the year.

According to the forecasts released by the Federal Reserve, the support within the officials for continuing to raise interest rates has not significantly weakened. The dot plot shows that 16 officials expect another interest rate hike this year, which has become one of the main reasons for Goldman Sachs to revise its forecasts.

Chairman's statement drives expected adjustments

The report mentioned that Federal Reserve Chairman Kevin Warsh stated multiple times after the meeting that the most recent interest rate hike "reduced a portion of the easing measures." This statement is seen as a hawkish signal, indicating that the decision-making authorities have not yet clearly decided to end this round of tightening.

The market continues to pay attention to subsequent data.

An upward revision in interest rate expectations usually affects the US dollar, the yield of US Treasury bonds, and the performance of risk assets. For the crypto market, changes in macro liquidity expectations are equally important, and subsequent statements by officials and economic data will continue to be closely watched.