'This would mean taking a pause in the inflation fight, but that should not be such a problem,' Goldman wrote.
Goldman Sachs said the Federal Reserve won't hike interest rates on Wednesday as most of Wall Street expects because of the emerging banking crisis. "We expect the FOMC to pause at its March meeting this week because of stress in the banking system," Goldman economists wrote in a note Monday.
"The inflation problem actually looks less urgent now than last summer because near-term inflation expectations have fallen sharply and long-term inflation expectations have remained anchored." First Republic shares have led a rout in regional banks that's come in the last week even after regulators backed the full deposits of collapsed Silicon Valley Bank and offered a new funding facility for troubled institutions.
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