Now that the Fed has hiked, what next? – Goldman Sachs

FXStreet (Delhi) – Silvia Ardagna, Research Analyst at Goldman Sachs, suggests that the US Federal Reserve raised policy rates, as widely expected while the SEP included only minor changes to the forecast for the economy and monetary policy stance.

Key Quotes

“We focus on three key themes.

• First, a gradual tightening cycle compared with history but a faster one than the market is currently pricing.

• Second, the Fed’s commitment to the inflation mandate supports our view that US medium-term inflation is cheap.

• Lastly, a ‘not mechanical’ hiking cycle is one more reason for volatility to remain elevated.”