Fed to hikes rates by 2% into the year-end 2022 – Goldman Sachs

Dhwani Mehta FXStreet

Following the aggressive tightening outlook delivered by Fed Chair Jerome Powell on Monday, Goldman Sachs outlined a new Fed projection report, reviving the timing and the degree of the rate hikes this year.

Goldman Sachs said that they now see “two 50 basis point hikes starting with the next meeting (May and June), followed by four 25 basis point hikes into the end of the year.”

The US investment banking giant added, they now “see Fed balance sheet reduction to start May.”

"Our best guess is that the shift in wording from 'steadily' in January to 'expeditiously' today is a signal that a 50bp rate hike is coming," Goldman added.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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