Fed will raise rates three times-Goldman Sachs
2023.02.17 09:34
Fed will raise rates three times-Goldman Sachs
By Kristina Sobol
Budrigannews.com – Analysts at Goldman Sachs now anticipate that the Federal Reserve of the United States will raise interest rates by 25 basis points three more times this year.
In the past, analysts had predicted that the Fed would raise rates twice more—in March and May. However, the strength of the labor market and persistently high inflation led the Fed to raise rates by 25 basis points in June. The investment bank now anticipates that the funds rate will reach its highest point between 5.25 and 5.5 percent.
Currently, the market anticipates a terminal rate of 5.3 percent by July.
In a client note, analysts wrote, “In light of the stronger growth and firmer inflation news, we are adding another 25bp rate hike to our Fed forecast.”
According to the most recent data, Goldman Sachs analysts anticipate that in January, the increased by 0.55 percent, or 4.50 percent year-over-year.
UBS analysts, in contrast to Goldman, anticipate two additional 0.25 percent rate increases.
In a client note, UBS analysts wrote, “After that, we expect the FOMC (Federal Open Market Committee) to turn around and begin to cut interest rates at the September FOMC meeting.”
A recent survey by Reuters found that the majority of economists anticipate the Federal Reserve raising rates at least twice in the coming months.
