Goldman Sachs Vice Chairman and former Dallas Fed President Rob Kaplan said markets are pricing in more Federal Reserve tightening than the economy warrants. He said another hike could take the federal funds rate to roughly 4%-4.25%, but favors skipping October and reassessing in December. Strong AI infrastructure and defense spending are supporting growth, while housing, autos and sales to lower- and moderate-income consumers remain sluggish. Goldman Sachs expects core PCE inflation to fall toward 2.2% year over year by the fourth quarter of 2027 as temporary drivers including tariffs, oil, software and accessories, and portfolio-management fees fade. Rising Treasury yields, a stronger dollar and monthly Bitcoin options expiry have pressured risk assets, with Bitcoin trading at $83,703 after reaching $87,000.