Spark Global Limited reports:
Goldman Sachs( 413.35 , -1.47 , -0.35% ) Group has advanced its expectations for the Fed’s first interest rate hike after the epidemic by one year, to July 2022, and expects that inflation will remain high.
Goldman Sachs chief economist Jan Hatzius said in a report to clients: “The main reason we adjusted our interest rate hike forecast is that we now expect core personal consumption expenditure (PCE) inflation to remain at 3% when the reduction ends. Above, core CPI inflation will remain above 4%.”
The Federal Reserve will conclude its two-day policy meeting on Wednesday and is expected to announce that it will begin to reduce the size of its $120 billion monthly Treasury bond and mortgage-backed securities (MBS) purchase program.
Hatzius said: “Major accidents in the areas of virus, inflation, wage growth or inflation expectations may prompt the market to make corrections, but we believe that changes in these two directions are facing great obstacles.”
Goldman Sachs also stated that it expects the Fed to raise interest rates for the second time in November 2022, and then raise interest rates twice a year thereafter.
Reprint indicated source：Spark Global Limited information