Goldman Sachs expects the Fed to raise rates for a third time in March next year, while its forecast for rate cuts is pushed back by one quarter.

Goldman Sachs said U.S. October CPI came in sharply higher than expected. David Mericle, the firm's chief U.S. economist, wrote in a report that he still expects the Federal Reserve to raise rates by 25 basis points for a second time in December, and added to his forecast a third 25-basis-point hike in March 2027. The third hike could also be brought forward to January, but March is slightly more likely because inflation data for November and December are expected to be relatively mild, while under persistent cost pressures, larger price increases early in the year are expected to push up January inflation.