KEY POINTS
  • "In light of the stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its next meeting on March 22," Goldman economist Jan Hatzius said in a Sunday note.
  • The firm expects the latest measures to "provide substantial liquidity to banks facing deposit outflows" and boost confidence among depositors.
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Goldman Sachs no longer sees a case for the Federal Reserve to deliver a rate hike at its meeting next week, citing "recent stress" in the financial sector.

Earlier Sunday, U.S. regulators announced measures to stem contagion fears following the collapse of Silicon Valley Bank. Regulators also closed Signature Bank, citing systemic risk.