Maximum attention this week will be paid to Jerome Powell's Fed rate announcement on Wednesday 21 September, at the end of the two-day meeting of the FOMC (the monetary policy arm of the Federal Reserve, the US central bank). Goldman Sachs economists have revised up their forecasts for what the Fed will announce the day after tomorrow: they now estimate a 75 basis point monetary tightening, compared to the previously expected 50 basis point hike.
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"The (higher) rates, combined with the recent tightening of financial conditions, imply a somewhat worse outlook for (GDP) growth and employment next year," Goldman Sachs economists added.
European countries could resist a gas cut by Russia during the winter. This was stated by economists at Goldman Sachs bank, noting that the price of gas could halve this winter, thanks to the effectiveness of measures taken by EU member states. Wholesale natural gas prices in Europe could fall from around EUR 215 per megawatt hour to less than EUR 100 per MWh by the end of the first quarter of next year, assuming typical winter conditions.
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