Goldman Sachs: The Federal Reserve is expected to keep interest rates unchanged, and the explanation for the decision is crucial

According to Jinshi reports, Goldman Sachs analysts pointed out in a report that the Federal Reserve is expected to maintain the federal funds rate unchanged at this week's meeting. The impact of this decision will depend on how Federal Reserve Chairman Waller explains this decision and the future policy path.

Analysts stated that if the Federal Reserve fails to provide sufficient economic outlook or policy response guidance, it may lead to volatility risks for the currently stable long-term U.S. Treasury yield curve and inflation risk premium. Currently, the money market pricing shows a 31.5% probability of a rate hike by the Federal Reserve this week, but the mainstream market expectation remains that interest rates will stay unchanged.