Goldman Now Sees Fed Hiking Rates in July as Inflation Lingers

Goldman Sachs Group Inc. economists said they now expect inflation will force the Federal Reserve to hike interest rates next July, a year earlier than previously expected.

In a report to clients late Friday, economists led by Jan Hatzius said the Fed will raise its benchmark from a range of zero to 0.25% soon after it stops tapering its massive asset-purchase program. A second increase will follow in November 2022 and the central bank will then raise rates two times a year after that, they said.