Goldman Sachs Forecast for U.S Interest Rate Hike by a Year

Goldman Sachs has issued its forecast by a year for the post-pandemic interest rate projection in the U.S. The renowned investment bank has stated that inflation will remain at higher levels to July 2022.
Goldman Sach’s chief economist, Jan Hatzius wrote, “The main reason for the change in our liftoff call is that we now expect core PCE inflation to remain above 3% and core CPI inflation above 4% when the taper concludes.”
He further said, “Large surprises on the virus, inflation, wage growth, or inflation expectations could prompt a revision, but we think the hurdle for a change in either direction is high.”
Policymakers in the Federal Reserve are expecting to indicate regarding asset tapering and bring forward plans for the process to wind down $120 billion in monthly purchases on treasuries and mortgage-backed securities. The meeting is schedule for the Wednesday this week.

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