Goldman Sachs: If the Federal Reserve holds steady today, the foreign exchange market will focus on the probability of future rate hikes

According to Jinshi reports, before the Federal Reserve announces its interest rate decision, the US dollar index remains flat; the uncertainty surrounding this decision is exceptionally high. Goldman Sachs economists expect the Federal Reserve to hold steady, but at least one vote is against and supports a rate hike. In a report, they stated that the energy price fluctuations caused by the war have cast a shadow over the outlook. Current market pricing shows that the probability of a rate hike today is about 30%. Goldman Sachs indicated that if the Federal Reserve maintains the interest rate today, the focus of the foreign exchange market will be on how much of the rate hike expectations reflected in prices will shift to subsequent meetings. Data from the CME shows that investors have priced in expectations for a rate hike in September.