Goldman Sachs said that it expects multiple US Fed Rate hikes in 2022. Organizations and analysts are keen to understand the exact level of rate hikes that will occur. The US Fed said that it was likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what Fed Chairman Jerome Powell pledged ‘will be a sustained battle to tame inflation‘. The US Fed said that a decision would be made in coming months on when to start shrinking the central bank’s government bonds and mortgage-backed securities.
Goldman Sachs said that their economists are estimating Fed rate hikes in March, May, July, September and December, and will start the reduction of bond portfolio in June. They said they expect the rate to stand at 1.25-1.5% by the end of 2022.
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