Goldman Sachs now thinks the Fed will hike rates four times in 2022 and start slashing its balance sheet in July

Goldman Sachs now thinks the Federal Reserve will hike interest rates four times in 2022 as it grapples with red-hot inflation, having previously penciled in only three rate rises.

The Wall Street giant said in a Monday note it believes the Fed will start selling some of its assets as early as July. The central bank currently holds almost $9 trillion worth of bonds, mainly government ones.
  • Goldman Sachs said it now expects the Federal Reserve to raise interest rates four times in 2022.

  • The Wall Street giant also predicts the Fed will start reducing its balance sheet in July or even earlier.

  • Goldman`s analysts said the labor market is strong and wages are rising, adding to pressure on inflation.
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RSK: I guess we all saw this coming, especially with all the Fed spending and inflation....the key is how much and how fast.



- - Volume: 10 - WEEK: 3 Date: 1/11/2022 9:37:35 AM -