Free Trial
USDCAD TECHS

Key Support Remains Exposed

AUDUSD TECHS

Pullback Extends, But Still Looks Corrective in Nature

US TSYS

FED Remains in Play Post-NFP/ISM Data

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Goldman Raises Hiking Forecast By 25bp

FED

Goldman Sachs analysts have raised their Fed hike forecast: they have added a 25bp hike to the path in May to their existing expectations of 50bp in Dec, 25bp in Feb, 25bp in March, putting their new terminal rate projection at 5.00-5.25%.

  • They cite pressure on the Fed amid inflation remaining uncomfortably high "for a while", alongside potential concerns that a deceleration in the pace of tightening could cause premature easing in financial conditions that the Fed will want to push against.
  • Also the Fed will likely have to hike more to keep economic growth below potential, as household real disposable income remains strong.
  • They expect the December Dot Plot to project a peak of either 4.75-5.00% or 5.00-5.25%.
116 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Goldman Sachs analysts have raised their Fed hike forecast: they have added a 25bp hike to the path in May to their existing expectations of 50bp in Dec, 25bp in Feb, 25bp in March, putting their new terminal rate projection at 5.00-5.25%.

  • They cite pressure on the Fed amid inflation remaining uncomfortably high "for a while", alongside potential concerns that a deceleration in the pace of tightening could cause premature easing in financial conditions that the Fed will want to push against.
  • Also the Fed will likely have to hike more to keep economic growth below potential, as household real disposable income remains strong.
  • They expect the December Dot Plot to project a peak of either 4.75-5.00% or 5.00-5.25%.