Inflation beats expectations for the third consecutive month; Goldman Sachs raises Fed rate-hike expectations

As reported by TechFlow on November 11, Goldman Sachs said on Tuesday that, after October inflation data came in above expectations for the third consecutive month, the bank expects the Federal Reserve to raise interest rates by a further 25 basis points in March 2027.

Goldman Sachs said: "The October CPI report significantly exceeded expectations across multiple categories, marking the third consecutive month in which inflation data has been more severe than expected. We continue to expect the Federal Reserve to deliver its second 25-basis-point rate hike in December and have incorporated a third 25-basis-point hike into our March 2027 forecast. The third hike could also be brought forward to January 2027, but we believe a March hike is slightly more likely. This is because we expect inflation data in November and December to ease somewhat, but given persistent cost pressures, typically larger price increases for goods and services at the start of the year could push inflation back up in January 2027." The Federal Reserve has already implemented its first rate hike in September 2026.

Source: TechFlow