The failure of Silicon Valley Bank (SVB) to raise interest rates by the Federal Reserve (Fed) has sparked new expectations for the upcoming policy meeting.
Goldman Sachs in its latest statement predicts that the Fed will not raise interest rates at the upcoming meeting on March 22.
This follows great uncertainty over the direction of policy after this month due to the uncertain pressure in the banking sector.
Earlier, Goldman had forecast a 25 basis point hike in March.
Even so, it did not change its expectations for a 25 basis point increase in May, June and July.
Last Friday, California regulators shut down SVB to control its deposits due to panic among depositors. The failure was followed by the closing of Signature Bank New York on Sunday.
Concerns about the crisis were seen to ease slightly in the Asian session today after the United States government and the Fed announced support measures for the bank.
Most recently, all SVB customers will reportedly have access to their deposits starting today, and Signature Bank depositors will also be paid in full with no loss to taxpayers.
At the same time, the Fed announced an emergency loan facility by providing additional funding to eligible banks to make it easier for them to meet the needs of all depositors.
Even with this aid, the US Treasury Department says there is still the possibility of more bank failures.
