Goldman Sachs: Energy Shocks to Keep US Rates Higher for Longer, Supporting Dollar Strength

According to Goldman Sachs, the U.S. dollar will strengthen further in the near term as energy price shocks keep yields elevated while economic growth remains resilient. The combination of rising inflation and growth resilience means interest rates will remain "higher-for-longer," according to Goldman Sachs strategist Karen Reichgott Fishman. Any further concerns about the duration of energy shocks should continue to support relative returns consistent with changing trade conditions and drive broad dollar strength against G10 currencies.
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