In their last note, economists at Goldman Sachs are now forecasting the US Federal Reserve (FED) to hike rates by 25 basis points (bps). The hikes are expected to occur at each of the FED meetings in March, May and June, later this year.
Goldman had previously projected that two rate hikes were coming up the road.
The slew of positive US economic data we mentioned in our End of day market reports, are the catalysts for this development . Stronger economic growth and firmer inflation news seem to be the rational for raising the interest rates in the second quarter.
Goldman projects the peak Fed Funds Rate at 5.25% – 5.50%.
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