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Goldman Lifts Forecasts for Fed Hikes on Powell’s Hawkish Signal

Bloomberg business news
WATCH: “There’s a very high likelihood that we’ll have a period of below-trend growth, by which I mean much lower growth,” Powell says.Source: Bloomberg

Goldman Sachs Group Inc. economists have raised their forecast for the Federal Reserve’s pace of interest rate hikes after Wednesday’s increase and Chair Jerome Powell’s hawkish signal.

The US lender now expects rate hikes of 75 basis points in November, 50 basis points in December and 25 basis points in February for a peak funds rate of 4.5%-4.75% compared with 4%-4.25% before, economists led by Jan Hatzius said in a research note.