Goldman Sachs say the Fed could hike to 5% by March 2023 (GS raise rate call by 25bp) | Forexlive

Adding to the hawkish Fed outlook already this morning from this:

A piece on the Federal Reserve outlook from Goldman Sachs via Bloomberg over the weekend.

GS are looking for 5% by March ’23. This is up 25 basis points from their previous forecast. GS project:

• +75 basis points at the meeting this week (meeting is November 1 and 2)
• +50 bp in December
• +25 bbp in February
• +25bp in March

GS cite 3 three reasons for hike beyond February:

• “uncomfortably high” inflation
• its necessary to slow the economy as fiscal tightening ends and price-adjusted incomes rise
• avoiding a premature easing of financial conditions

Graph from the Fed, the Banks’s funds rate: