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

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