Goldman Sachs warns of inflation risk or impact on Fed rate cut expectations

Goldman Sachs warns that if the US CPI data released on Friday exceeds expectations and rises, the Federal Reserve may shift to a hawkish stance, impact market expectations of interest rate cuts, and put pressure on Bitcoin and mainstream altcoins. Goldman Sachs Asset Management pointed out that the current market is pricing for a more stable monetary easing cycle, but inflation data may change the direction of the Federal Reserve's policy. Analyst Kay Haigh stated that despite only marginal cooling in the labor market and sustained economic growth exceeding expectations, the Federal Open Market Committee (FOMC) may focus on the inflation situation. Goldman Sachs' benchmark forecast suggests that the Federal Reserve still has room for two interest rate cuts this year, provided that CPI data does not unexpectedly rise. AI interpretation: The release of CPI data will directly affect the direction of the Federal Reserve's monetary policy, especially in the context of rising inflation risks. Goldman Sachs' warning emphasizes the sensitivity of the market to expectations of interest rate cuts. If CPI exceeds expectations, it may lead to the Federal Reserve adopting a more hawkish stance, thereby suppressing the possibility of interest rate cuts. This dynamic will have a significant impact on market sentiment, especially in risky assets such as cryptocurrencies, and investors need to closely monitor the upcoming data releases.