Free Trial

VIEW: Goldman Sachs Add One More Hike To ’23 Projection

FED

Goldman Sachs raise their “core PCE inflation forecast to 3.7% at end-2022 (vs. 3.1% previously) and 2.4% at end-2023 (vs. 2.2%). Accounting for a wider CPI-PCE gap, this implies 4.6% headline CPI inflation at end-2022 and 2.9% at end-2023. A very high inflation path in 2022 should make an easy case for steady rate hikes at all seven remaining FOMC meetings. In light of our higher inflation forecast for 2023, we now expect four additional quarterly hikes next year (vs. three previously), resulting in a slightly higher terminal funds rate of 2.75-3.00%.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.