Chris Hondros/Getty Images
- The Federal Reserve isn't going to raise interest rates beyond May, according to Goldman Sachs.
- Fed minutes released Wednesday showed policymakers fretting that the banking crisis would lead to a mild recession in the US.
- Chief economist Jan Hatzius still sees a 35% probability of a US recession in the next 12 months.
Goldman Sachs no longer expects US interest rates to rise in June thanks to cooling inflation, a weakening jobs market, and the Federal Reserve's worries about last month's banking crisis.
"We are changing our Fed call to remove the hike we had previously expected in June. We continue to expect a hike in May, which would raise the target range to 5-5.25%," its team led by chief economist Jan Hatzius wrote in a note Wednesday.