Goldman Boosts Fed Rate Call, Now Sees a Peak of 5% to 5.25%
- Goldman sees half-point hike, then three quarter-point rises
- Economists say inflation ‘likely to remain uncomfortably high’
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Goldman Sachs Group Inc. has added a quarter percentage point to its forecast for the peak in the Federal Reserve’s benchmark interest rate, thanks in part to the likelihood of inflation remaining “uncomfortably high” for some time.
The bank’s economists, led by Jan Hatzius, said in a note to clients on Wednesday that they now anticipate the Fed boosting the key rate to a range of 5% to 5.25%, up from the previous call of 4.75% to 5%.