Fed unlikely to raise rates until 2025 – Goldman Sachs

Dhwani Mehta FXStreet

In the view of the Goldman Sachs’ Research Team, the US Federal Reserve’s (Fed) aggressive average inflation targeting (AIT) policy would keep rates very low for a long period of time.

Key quotes (via Forbes)

“Last week, Fed Chair Jerome Powell announced that the Fed will now seek to target inflation that averages 2% over time, meaning that it can allow inflation to surpass that level during periods of economic recovery.”

“Keeping rates at their current levels means that borrowing costs for both businesses and consumers will stay lower for longer – it will be cheaper for small businesses to get loans, for instance, and cheaper to buy a home with a mortgage.”

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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