Goldman Sachs issued comments following the Federal Open Market Committee's decision to raise the federal funds rate target range by 0.25 percentage points to 3.75-4.00%, marking the first rate increase since July 2023.

The decision was unanimous, with no dissents from the Committee. The post-meeting statement described inflation as "remains elevated" and stated that "today's policy action will support a timelier return to the Committee's 2 percent goal."

According to a Goldman Sachs analyst, the median forecast in the Summary of Economic Projections projected one additional rate hike in 2026 and no changes to the federal funds rate in 2027. Chairman Warsh did not submit projections.

The analyst noted that the median SEP forecast projected slightly higher core and headline PCE inflation in 2026, alongside higher GDP growth and a lower unemployment rate. The analyst added this suggests "the FOMC expects limited downward revisions from the upcoming methodological changes later this month or chose not to incorporate expectations for those revisions at this point."