© Reuters.
In the face of the Federal Reserve’s decision to maintain historically high benchmark interest rates, Goldman Sachs analysts have delivered a robust outlook on the U.S. economy. Despite acknowledging potential vulnerabilities for small businesses, small banks’ credit provision, and the real estate sector due to prolonged high yields, they do not foresee these issues jeopardizing the overall economic health of the country.
On Friday, long-term Treasury yields saw an uptick, with the 10-year Treasury note yield climbing to 4.627%. This increase comes despite a monthly decline, yet the yields are still approximately 80 basis points higher than at the start of the year.
Investor concerns extend to the U.S.’s public debt and the upcoming 2024 presidential election. The analysts from Goldman Sachs anticipate market stability unless the election triggers new unfunded fiscal policies. Additionally, they expect that the current high volatility in U.S. yields will decrease in their central scenario.
Looking ahead to 2023, Goldman Sachs projects a 2.4% growth in the U.S. economy, outpacing last year’s consensus forecast by a substantial two percentage points. They also…
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