Fed Should Do Nothing for This Moment, Goldman's Robert Kaplan Says

• The Fed should do nothing for the moment, letting the situation evolve and acting as a risk manager rather than a prognosticator.
• The war in Iran will dampen the previously forecast strengthening of the US and global economies, leading to lower GDP growth and stickier prices.
• Despite market resilience (equities not down much, credit spreads holding), clients are experiencing disruptions like canceled orders and shipping issues, affecting various industries.
• For investors, the best advice is to adopt a long-term horizon, avoid overreacting, and manage emotions, as traditional safe havens like gold and 10-year Treasuries are not behaving as expected.

Goldman Sachs' Robert Kaplan advises the Fed to remain non-committal and act as a risk manager amid the war in Iran, which is dampening global economic strengthening and leading to stickier prices. He notes that while capital markets show resilience, clients are experiencing disruptions, and investors should maintain a long-term horizon.