Goldman Says Stock Market Sell-Off Will Soften Fed Rate Increase

The recent stock market decline may auger for a lighter touch when the U.S. Federal Reserve raises interest rates, a new research piece from Goldman Sachs observes. Considering stock market declines of at least 10 percent, one might anticipate a 15 basis point rate hike rather than a 25 basis point hike, which, the report author contends, will occur in December.

Goldman: Stock market declines impact government decision making.

All stock market declines hurt investors, and the Fed raising interest rates and ending the period of artificial tranquility known as quantitative easing has been anticipated to cause turbulence.  The recent stock market temper tantrum – which...