Goldman Strategists See Inflation Keeping Fed Hawkish for Longer
- Market underestimates risks of persisting inflation: Goldman
- Strategists expect earnings revisions to turn more negative
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The Federal Reserve is likely to stay hawkish for longer amid persistently high inflation, according to Goldman Sachs Group Inc. strategists, the latest to enter the debate around a potential central bank pivot as growth slows.
Investors appear to have turned more optimistic about central banks reversing hawkish policies, after in previous cycles policy makers dovishly changed course in response to economic weakness, strategists led by Cecilia Mariotti wrote in a note dated July 25.