Understand this story
On October 25, 2026, Goldman Sachs strategist Cosimo Codacci-Pisanelli warned that the market is underprepared for whether the Fed will raise rates in December: the market is finding it difficult to fully reprice a 25-basis-point rate hike in December, but a December hike remains Goldman Sachs' base case. The same report noted that the 10-year U.S. Treasury yield fell 17 basis points in a single day, the largest one-day drop since March 2023, and fell back below 5%; the pullback was driven by an AI stock selloff that pushed funds into long-duration U.S. Treasuries. Goldman Sachs also expects AI capital expenditure to reach about $1.6 trillion in 2027, with the share of debt financing rising, and pressure on U.S. Treasury supply has not yet eased. There are currently no subsequent developments of fact regarding this judgment.
AI-generated from public reports
Latest development · Report
Goldman Sachs Warns: Whether the Fed Hikes in December or Not, Markets May Be UnpreparedDevelopments
1 confirmed developments
Goldman Sachs warns market is underprepared for the Fed's December rate path
Source:Wallstreetcn
Reports and discussion timeline
Browse reports and discussion by time. Their evidence levels remain distinct.
Oct 25
Wallstreetcn
Goldman Sachs Warns: Whether the Fed Hikes in December or Not, Markets May Be Unprepared
Goldman Sachs strategist Cosimo Codacci-Pisanelli warned that it will be difficult for the market to fully reprice a 25-basis-point rate hike in December, but a December hike remains his base case. The 10-year Treasury yield fell 17 basis points in a single day, the largest one-day drop since March 2023, and fell back below 5%; the decline was driven by an AI stock selloff that pushed funds into long-duration Treasuries. Goldman Sachs expects AI capital expenditure to reach about $1.6 trillion by 2027, with debt financing accounting for a rising share, and pressure on Treasury supply has not yet eased.