Goldman Sachs now sees Fed hiking again in October

Goldman Sachs has revised its view on US interest rates, now expecting the Federal Reserve to lift rates by 25 basis points at its October policy meeting, according to Business Recorder. The Wall Street bank's note adds one more increase to the September forecast it had already made. The bank sees October as the most probable point for the next move, because it would be the most natural time for the Fed to act on hikes it has framed as backing a timelier return to its 2% inflation target.

Goldman Sachs had previously pencilled in a September move, and the latest note adds a further increase to that expectation. Its reasoning rests on the Fed's own presentation of rate increases as support for a faster return to target inflation, with hikes at consecutive meetings seen as the natural path.