Banking Turmoil Puts Pressure on Fed's Policy Decisions
Goldman Sachs economist David Mericle predicts that the Federal Reserve will not raise interest rates at this week's meeting due to banking system stress. He believes that the link between a single quarter-point hike and future inflation is weak and that the Fed can quickly get back on track with hikes. The bank still expects quarter-point increases in May, June, and July. The yield on the 2-year Treasury fell 6 basis points to 3.77%.