Goldman Sachs, a major US investment banker, forecasts The Federal Reserve will raise interest rates five times in 2022, compared with previous forecasts of four rate hikes, with the first rate hike likely in March.
Economists decided to revise their forecasts for interest rate hikes. The Fed said on Wednesday Jan. 26 that it was likely to raise interest rates in March and confirmed its plan to end its quantitative easing (QE) bond purchase program in the same month. which Fed Chairman Jerome Powell assured is the right plan for inflation.
Archyde.com released a statement from Mr Powell. After the completion of the Monetary Policy Committee (FOMC) meeting on Wednesday that The Fed will decide in the coming months on when to begin curtailing purchases of government bonds and mortgage-backed bonds (MBS).
Goldman economists David Merkel and Jan Hatseus Sachs predicted that The Fed will raise interest rates in March and May. and announced the start of the balance sheet reduction in June Then it will raise interest rates once more in July and September. before returning to quarterly operations in the 4th quarter of 2022 by raising interest rates once in December. The interest rate at the end of this year will be 1.25% – 1.50% from the current 0.00-0.25%.
In addition, Goldman Sachs predicted that The Fed will raise interest rates three times in 2023 and raise interest rates to 2.50% – 2.75 percent in 2024 earlier in January. Goldman Sachs predicted that The Fed will raise interest rates four times this year and begin cutting its balance sheet in July.