Yingwei Financial Investing – Goldman Sachs said in a research note that the Federal Reserve may raise the federal funds rate to 5 percent in March next year, 25 basis points higher than its previous forecast, Goldman Sachs said in a research note on Sunday.
Goldman Sachs economists said the Fed’s rate hike path is 75 basis points in November, 50 basis points in December, and 25 basis points in February and March next year.
Goldman’s main reasons for expecting a rate hike in March next year are: troublingly high inflation; the urgent need to cool the economy as fiscal austerity ends and citizens’ incomes rise; and to avoid premature easing of financial conditions, according to the research report.
According to data, the market expects the Fed to raise interest rates by 75 basis points for the fourth time in November.
Goldman Sachs CEO David Solomon pointed out last week that if Fed officials do not see a real change in the market, then the Fed is likely to raise interest rates by more than 4.5%-4.75%.
[This article is from Yingwei Caiqing Investing.com, to read more, please log on to cn.Investing.com or Yingwei Caiqing App]
Recommended reading
(Editor: Chen Han)