The bank expected to raise interest rates by 25 basis points at the next meeting
Goldman Sachs cut its interest rate forecast in the United States after inflation slowed more than expected.
The bank expected to raise interest rates by 25 basis points at the Fed’s meeting next month, but it retracted its expectations of approving an additional increase in June.
The bank indicated that the US interest rate will range between 5% and 5.25%, compared to previous expectations of 5.25% and 5.5%.
The Fed last raised interest rates to a range of 4.75% and 5%, amid expectations of an additional one increase this year.
The annual inflation rate in the United States declined in March to 5% from 6% in February, while analysts had expected it to decline to 5.2%.
Although this decline is for the ninth month in a row, inflation rates are still far from the Fed’s target of 2%.
Core inflation, which excludes energy and food, rose to 5.6% in March from 5.5% in February.