Global investment bank Goldman Sachs has revised its interest rate hike prediction for the upcoming Federal Open Market Committee (FOMC) meeting in March. In a note to clients on Sunday, the bank’s economists, led by its chief economist Jan Hatzius, detailed: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.

Last month, the FOMC increased the federal funds rate by 25 basis points to a target range of 4.5% to 4.75%, the highest since October 2007.

Goldman revised its forecast shortly after the Treasury Department, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) announced rescue measures for depositors of two failed banks. Regulators shut down Silicon Valley Bank on Friday and Signature Bank on Sunday. In addition, the Federal Reserve Board said Sunday that additional funding will be made available to eligible depository institutions.

The economists further noted that they still expect the Fed to raise interest rates by 25 basis points in May, June, and July, with a terminal rate expectation of 5.25% to 5.5%.