Goldman Sachs pushes back its Fed rate-hike call to December

Goldman Sachs has pushed back its forecast for when the Federal Reserve will next raise interest rates, now expecting the move in December rather than earlier, Investing.com reported. The revision comes alongside new inflation data showing the Fed has missed its 2% target for 66 consecutive months, according to a Seeking Alpha analysis published the same day. A delayed hike call, paired with persistent above-target inflation, puts the Fed in an awkward spot: price pressures have not eased enough to justify holding steady indefinitely, but the central bank also has not moved to tighten policy further. Separately, weaker-than-expected PCE inflation data — the Fed's preferred gauge — failed to move markets much this week, suggesting investors are waiting for more concrete signals before repricing rate expectations. What remains unresolved is how much weight the Fed itself is putting on the 66-month streak versus more recent monthly readings. Goldman's December timeline implies the bank expects at least two more months of data before the Fed acts.