After the Fed's latest interest rate hike, Wall Street has once again adjusted its assessment of the subsequent policy path. Goldman Sachs currently expects the Fed to raise interest rates by another 25 basis points in October, and the market has also begun to re-evaluate the potential for further rate increases this year.

Goldman Sachs adjusts interest rate hike expectations

Goldman Sachs stated that the reason for their change in opinion is mainly due to the more hawkish stance of the Federal Reserve after this week's meeting. Previously, the firm expected a pause in interest rate hikes after the September increase, but their latest assessment has shifted to a continuation of rate hikes in October.

On Wednesday, the Federal Reserve raised its benchmark interest rate by 25 basis points, bringing the target range to 3.75% to 4.00%. Updated interest rate forecasts indicate that most policymakers still expect at least one more interest rate hike this year.

Market bets remain cautious

Despite Goldman Sachs having raised its forecasts, the pricing in the interest rate market has not fully moved in the same direction. According to the FedWatch tool from CME, traders currently estimate that the probability of another 25 basis point interest rate hike in October is slightly over 50%.

This means that although the market accepts the possibility of further tightening policies, it remains cautious about whether interest rate hikes will actually be implemented. Moving forward, changes in inflation, employment, and financial conditions will continue to affect the expectations before the October meeting.

Bitcoin maintains narrow fluctuations

At a time of changing macroeconomic expectations, Bitcoin has performed relatively steadily. At the time of this report, the trading price of BTC was around $76,260, with a 24-hour increase of about 0.5%.

From a short-term perspective, the market did not experience significant fluctuations due to Goldman Sachs' latest assessment. This also reflects that investors are concerned about the risk of further interest rate increases on one hand, while still awaiting clearer policy signals and subsequent economic data on the other.