Goldman Sachs says the Fed is done hiking even if the dot plot shows differently
The Federal Reserve is done hiking this year, even if the dot plot that’s set to release this week shows one more increase, according to Goldman Sachs.
“On November, we think that further labor market rebalancing, better news on inflation, and the likely upcoming Q4 growth pothole will convince more participants that the FOMC can forgo a final hike this year, as we think it ultimately will,” the firm’s chief economist Jan Hatzius wrote on Saturday.
“But we expect the dot plot to show a narrow 10-9 majority still penciling in one more hike, if only to preserve flexibility for now,” he added.
The dot plot shows where individual members expect to see rates trending over the next several years. The Fed concludes its two-day policy meeting Wednesday.
— Sarah Min
CNBC Pro: Analysts name 2 stocks to play the $104 billion EV charging industry — giving one 95% upside
Public electric vehicle charging infrastructure remains “critical” in driving further EV adoption, said analysts at investment bank TD Cowen.
The bank concluded that the world will require a “massive and rapid” buildout of charging infrastructure and installation that it estimates would require a total U.S. investment of $104 billion through 2030.
Here are some areas that will take up the bulk of that opportunity, as well as stocks that could benefit, according to TD Cowen.
European markets are expected to open in mixed territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 14 points higher at 7,662, Germany’s DAX up 7 points at 15,274, France’s CAC 4 points lower at 7,266 and Italy’s FTSE MIB down 10 points at 28,598, according to data from IG.
Earnings are set to come from Kingfisher and Ocado Retail. Data releases include euro zone final inflation figures for August.