Goldman: There's Now A 25% Chance The Fed Will Make Money Absolutely Free To Borrow In November

The most likely scenario going forward is that the Federal Reserve keeps its key interest rate at the near-zero level of 0.25%… but according to Goldman’s probability model, there’s a not-insignificant chance (26%) that the Fed surprises the market with an interest rate cut to 0% itself.


If it doesn’t happen in November, then it could still happen in December or January with a similar probability according to the above.

While this is far from the base case scenario for how things play out, it’s far more likely than an interest rate hike (to 0.50%), whose probability is almost non-existent according to Goldman.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at