SINGAPORE (Reuters) – Goldman Sachs (NYSE: GS) expects a steeper path to U.S. interest rate hikes and
They had previously forecast
a rate hike in September by basis points.
Analysts also raised their November forecast from 50 bps to 77 bps , the federal funds rate window will be 3.75-4% by the end of the year.
“Fed officials have sounded hawkish lately, seeming to suggest that progress in curbing inflation is not as progressing as they are,” analysts led by economist Jan Hatzius said in a note late Wednesday. As consistent or rapid as hoped other key growth drivers) are more uncertain and we can imagine hiking cycles beyond that ar.”
Federal funds futures imply approximately 77% probability of reaching 75 bps rate hike at the September policy meeting, the benchmark interest rate peaked at around 4% in early trading 2023.
