Goldman Sachs And JP Morgan Predict four US Rate Hikes this Year

Goldman Sachs projects that the Federal Reserve will raise rates four times this year and will begin the process of reducing the size of its balance sheet as early as July, joining other big banks in predicting an aggressive tightening of monetary policy in the United States.

The Wall Street bank previously forecast interest rate hikes by the Fed in March, June and September, but now expects another hike in December.

The rate forecast by Goldman Sachs is only modestly above market expectations for 2022, “but the gap grows significantly in subsequent years,” chief economist Jan Hatzius wrote in a note published Sunday.

JP Morgan anticipated on Friday (7) its forecast for the first rate hike since the beginning of the pandemic for March, compared to June, and forecasts interest rate hikes every quarter this year.

“We believe Fed officials are coming to the same conclusion that the job market is too tight, making it difficult to hold the first increase until June, our previous forecast,” the bank’s chief economist Michael Feroli wrote in a note.

Reviewer overview

Goldman Sachs And JP Morgan Predict four US Rate Hikes this Year - /10

Summary

The bank had previously forecast interest rate hikes by the Fed in March, June and September, but now expects another rate hike in December.

0 Bad!