Fed to raise rates 4 times in 2018 over tight labour market: Goldman Sachs

The US central bank has raised rates twice this year and currently forecasts another hike in its benchmark lending rate from its current target range of 1.00% to 1.25% by the end of 2017

Goldman Sachs said it expects a tight US labour market and more normal inflation picture will lead the Federal Reserve to hike interest rates four times next year.

“The US economy heads into 2018 with strong growth momentum and an unemployment rate already below levels that Fed officials view as sustainable,” Goldman’s economists wrote in a note dated Friday.

Four hikes are more than Wall Street has been expecting for 2018. In a Reuters poll, Wall Street’s top banks saw the Fed raising borrowing costs three times in 2018.

The US central bank has raised rates twice this year and currently forecasts another