Goldman Sachs Revised Its Rate Increase Forecasts

Goldman Sachs revised its rate increase forecasts. Economists of the US-based investment bank Goldman Sachs shared their predictions that the US Federal Reserve (Fed) will increase interest rates four times in 2022, in March, June, September and December. According to the research note written by the bank's chief economist Jan Hatzius, the recovery in the US labor market and the hawkish signals in the minutes of the FED meeting that took place on December 14-15 point to a faster normalization. In his research note, Hatzius stated that they pulled the forecast for balance sheet reduction from December to July, adding that inflation will most likely be well above the target. Hatzius said, "We added December to the rate hikes we expect to see in March, June and September." In the minutes of the last meeting of the FED, there were statements that interest rates could be increased earlier than anticipated and assets in the balance sheet could decrease. In addition, FED members' concerns about global supply bottlenecks drew attention.