Goldman Sachs economist Jan Hatzius don’t think there is a case for them federal reserve to raise interest rates according to a CNBC report at its policy meeting next week due to “recent stress” in the financial sector.

“Given the stress in the banking system, we no longer expect the FOMC to come up with a rate hike at its next meeting on March 22,” Hatzius wrote in a statement report called.

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Fed steps: Goldman Sachs economists said the package of relief measures announced on Sunday lags behind similar measures during the 2008 financial crisis.

The treasury determines Silicon Valley Bank SIVB And signature bank SBNY as systemic risks, while the central bank created a new one Program for financing bank terms to support institutions affected by the market Instability after SVB failuresaid the report.

“Both of these moves are likely to boost depositor confidence, although they shy away from an FDIC guarantee for uninsured accounts such as that introduced in 2008,” the economists wrote.

“Given the measures announced today, we do not expect that short-term measures in Congress will offer guarantees,” they said, adding that they expect the recent measures “to provide significant liquidity to banks facing deposit outflows.” “.

Goldman said it still expects hikes of 25 basis points in May, June and July and reiterated its final rate expectation of 5.25% to 5.5%.

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