The Fed Will Not Raise Interest Rates in November 2023. Goldman Sachs strategists project that the United States (US) central bank or The Fed will probably not raise interest rates on October 31-November 1 2023. They said that positive economic indicators would convince the Federal Open Market Committee (FOMC) to cancel its interest rate increase.
They also predict that the Fed’s “dot plot”, which reflects the Fed’s interest rate projections, will show signs of another increase, if only to maintain flexibility for now.
On the other hand, several large investors, including J.P. Morgan Asset Management and Janus Henderson Investors, said that the central bank is likely to raise interest rates. The decision itself follows the most aggressive monetary policy tightening cycle in decades.
According to CME Group’s FedWatch Tool, futures contracts tied to the Fed’s benchmark interest rate, calculate a 98 percent chance that the central bank will keep interest rates unchanged at the end of its September 19-20 2023 meeting.
In addition, interest rates are currently in the range of 5.25-5.50 percent, 72 percent is expected to remain unchanged at the October 31-November 1 2023 meeting. The Goldman strategist then also added that next year it appears that interest rates will decrease gradually, if inflation continues to cool.
Not only that, they also predict that the Fed will raise its economic growth projections when policymakers gather next week. Strategists said the Fed could raise its estimate for US growth in 2023 to 2.1 percent from the previous 1 percent. This reflects economic resilience.
It is estimated that the estimated unemployment rate in 2023 will also be cut by two tenths of a point to 3.9 percent. Core inflation is also expected to decrease by four tenths of a point to 3.5 percent
