Goldman Sachs: Tight Monetary Policy to Weigh on Markets and Economy

Goldman Sachs warned prolonged tight monetary policy from the Fed will weigh on markets and the economy.

Sticky inflation and resilient economic data have muddled rate cut forecasts.

Tighter financial conditions could drag GDP growth 0.5% lower over the next year.

There are risks of a stock market sell-off if valuations remain high amid higher rates.

Less funding for unprofitable companies could force more closures and job cuts.