Lates News

Goldman Sachs analysts pointed out in their report that since the outbreak of the Iraq war, the market pricing of the federal funds rate in the United States has experienced drastic fluctuations, but the possibility of a rate hike this year remains low. The analysts stated that the current supply shock is relatively small and more limited in causing inflation problems compared to previous shocks, with oil price increases also lower than in the 1970s. Additionally, they believe that the "starting point of the economy makes it less likely for inflation to spill over widely" and the current monetary policy stance also reduces the probability of a rate hike. The analysts emphasized that the Federal Reserve typically does not adopt a tightening policy solely in response to oil shocks.