Goldman Sachs’ latest forecast: The Fed will raise interest rates five times this year in March, May, July, September and December.
Xinhua News Agency, Beijing, January 30. Goldman Sachs Group predicted on the 29th that the US Federal Reserve will raise interest rates five times in 2022. Previously, Goldman Sachs predicted that the Fed could raise interest rates four times this year.
Goldman Sachs economists David Merrickel and Jan Hatchus wrote in a research note that they expect the Fed to raise interest rates in March and May, announce a balance sheet reduction in June, and then announce in July and September. rate hikes in December and December.
The research paper wrote that in the fourth quarter of this year, the Fed will raise the interest rate range to 1.25% to 1.5%.
The two economists revised their expectations for a rate hike from the Fed after Fed Chairman Jerome Powell spoke this week. “Powell’s remarks earlier this week suggest that Fed leadership is open to tightening (monetary policy) at a more aggressive pace.”
The Federal Reserve announced on the 26th to maintain the target range of the federal funds rate between zero and 0.25%, saying that it would be appropriate to raise the target range of the federal funds rate soon. According to Bloomberg News, this suggests that the Fed will raise interest rates as early as March.
In addition, Merrickel and Hatchus forecast that the Fed will raise interest rates three times in 2023. (Bu Xiaoming)