Skip to content

Goldman’s Hatzius Sees Chance Fed May Need to Hike Rates Past 4%

  • Group’s baseline is for Fed rates a bit above 3% in 2023
  • Achieving a soft landing will ‘require some fancy footwork’
Video player cover image
Goldman's Hatzius: May Need Rates Above 4% If U.S. Doesn't Slow
Updated on

The Federal Reserve may need to raise interest rates “significantly” higher than it currently expects to cool an overheated U.S. economy, Goldman Sachs Group Inc. Chief Economist Jan Hatzius said.

“If the economy does not slow and if we, in particular, don’t get a pretty substantial slowdown in employment growth, then you’d be looking at something that could go significantly higher, to the 4%-plus range,” he said in an interview on Bloomberg Television on Friday.