Free Trial

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%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.