ZeroHedge, the financial markets blog, posted on X today, November 11, 2026, that Goldman Sachs has adjusted its interest rate forecast. The firm's analysts stated, "We continue to expect a second 25bp rate hike in December and are adding a third 25bp hike to our forecast in March 2027." This revised outlook comes after the October Consumer Price Index (CPI) report showed inflation surprising to the upside for the third consecutive month.
The updated forecast emerges as market participants grapple with ongoing inflationary pressures. Recent Gokhshtein Media coverage noted a core inflation spike to 4.1%, which triggered an 80% probability for a December rate hike. This persistent inflation has led to a growing Treasury selloff and a perceived hawkish pivot from the Federal Reserve. Analysts like David Gokhshtein have suggested that inflation data puts a half-point hike on the table, while Peter Schiff called for a 200 basis point increase.
Goldman Sachs's view suggests a more aggressive tightening path than previously anticipated, implying the Federal Reserve may need to act more decisively to curb price increases. The firm indicates a third hike could potentially occur earlier in January, but March 2027 is considered more likely due to expected softer inflation reports in November and December, followed by larger start-of-year price increases. This extended tightening cycle could impact borrowing costs and economic growth into the new year.
