Goldman Sachs cuts US GDP forecasts for 2022 and 2023 – Bloomberg

Anil Panchal FXStreet

“Goldman Sachs Group Inc. economists cut their forecasts for US growth for this year and next to reflect the shake-out in financial markets amid the Federal Reserve’s tightening of monetary policy,” said Bloomberg in its latest analytical piece during early Monday in Asia.

The news also mentioned, “In a report Sunday, the economists led by Jan Hatzius said they now expect the economy to grow 2.4% this year and 1.6% in 2023, down from 2.6% and 2.2% previously.”

“The economists projected the unemployment rate will rise to 3.7% by the end of 2023 after falling to 3.4% in coming months,” said Bloomberg.

Market implications

Growth fears are largely heard and priced in amid concerns over inflation, geopolitics and covid, which in turn restricts the market’s reaction to the news. However, the same probes the previous day’s cautious optimism during the inactive hours of the Asian session.

Read: Much to gold’s dissatisfaction, the USD index seems unstoppable

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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