Goldman Sachs: Revisions to Fed's economic forecasts smack of ‘stagflation’

Whitney Watson, Global Co-Head of Asset Management at Goldman Sachs, said that, as expected, the Federal Reserve adopted a cautious tone at this month's meeting, remaining unchanged as it waits for clarity on the outlook for economic growth and changes in trade policy. Revisions to the Federal Open Market Committee members forecast a bit of ‘stagflation’ feeling, because of the opposite direction of growth and inflation forecasts. For now, the Fed is in a wait-and-see mode as it watches to see whether the recent slowdown in economic growth will develop into a more serious problem.