Business Standard

Goldman Sachs predicts Fed will raise rates five times this year

Bank of America Corp. now predicts seven rate hikes in 2022 and BNP Paribas SA forecasts six, while JPMorgan Chase & Co. and Deutsche Bank AG see five

Photo: Reuters

Photo: Reuters

Simon Kennedy | Bloomberg
Goldman Sachs Group Inc.’s economists joined Wall Street peers in forecasting the Federal Reserve will raise interest rates more aggressively than they previously expected.

Economists led by Jan Hatzius now predict the Fed will lift its near zero benchmark by 25 basis points five times this year rather than on four occasions. That would take the benchmark to 1.25%-1.5% by the end of the year.

Shifts are now seen by Goldman Sachs in March, May, July, September and December. They also expect officials to announce the start of a balance sheet reduction in June.

The switch came days after Fed Chair Jerome Powell

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 29 2022 | 9:03 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to