FameEX Hot Topics | Goldman Sachs Forecasts No March Interest Rate Increase Due to US Banking System Stress
Goldman Sachs has revised its forecast for U.S. interest rates due to concerns about the stability of the banking system. The investment bank no longer expects the Federal Reserve to raise interest rates at its Federal Open Market Committee (FOMC) meeting in March, following the central bank's measures to rescue depositors of failed banks, Silicon Valley Bank and Signature Bank.
One of the Federal Reserve's actions to rescue depositors of the failed banks was to release $3.3 billion in reserves held by Circle, a cryptocurrency firm, at Silicon Valley Bank. These funds, which were previously frozen due to the bank's collapse, are expected to make depositors whole again.
Goldman Sachs' revised interest rate forecast comes amid growing concerns about the stability of the U.S. banking system. The bank's decision to revise its forecast may have significant implications for the broader financial landscape, particularly as the use of cryptocurrencies continues to increase. It remains to be seen how the Federal Reserve's actions will impact the market in the long term.
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