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Fed Won’t Raise Rates Until 2025, Goldman Sachs Predicts
After the Federal Reserve unveiled major changes to the way it plans to manage inflation and unemployment, new analysis from Goldman Sachs supports the bank’s earlier prediction that the central bank will keep rates low until about 2025. • Last week, Fed chair Jerome Powell announced that the Fed will now seek to target inflation that averages 2% over time, meaning that it can allow inflation to surpass that level during periods of economic recovery. • The Fed hopes that the change will help boost the labor market by keeping rates lower for longer and thus providing additional support for the economy. • ... (full story)