SINGAPORE—Goldman Sachs expects a steeper path for U.S. rate rises and a 75 basis point hike this month, as Federal Reserve officials have been sounding hawkish recently, the investment bank’s analysts said in a note.
They had previously forecast a 50 bps hike in September.
The analysts also raised their November forecast from 25 bps to 50 bps and see the Fed Funds rate window at 3.75–4 percent by year’s end.
The Federal Reserve Board building on Constitution Avenue in Washington on March 27, 2019. (Brendan McDermid/Reuters)
“Fed officials have sounded hawkish recently and have seemed to imply that progress toward taming inflation has not been as uniform or as rapid as they would like,” said the analysts, led by economist Jan Hatzius, in the note published late on Wednesday….