Goldman Sachs: Fed rates peaking at 5% in March – Bloomberg – by anilpanchal7 Fed RiskAppetite Banks DollarIndex InterestRate
to as high as 5% by March 2023, 25 basis points above its earlier predictions, Bloomberg News reported on Sunday,” per Reuters.Goldman Sachs Chief Executive Officer David Solomon last week said the U.S. Federal Reserve could hike rates beyond 4.5-4.75% if it does not see ‘real changes in behaviour.’
Goldman cited three reasons for expecting the Fed to hike beyond February -an"uncomfortably high" inflation, the need to cool the economy as fiscal tightening ends and price-adjusted incomes climb, and avoiding a premature easing of financial conditions. Betting on a less hawkish Fed has been a dangerous undertaking this year. Stocks have repeatedly rebounded from lows on expectations of a so-called Fed pivot, only to be crushed anew by fresh evidence of persistent inflation or a central bank bent on maintaining its pace of rate increases.EURUSD Weekly Forecast: Roles invert with US Federal Reserve and EU Gross Domestic Product coming up next
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