Goldman ups call for September FOMC to a 75 basis point hike
By Alexander Bueso
Date: Thursday 08 Sep 2022
(Sharecast News) - Economists at Goldman Sachs revised their forecast for the path that the Federal Reserve's interest rate hikes will follow higher.
In a research note sent to clients, they upped their call for the Federal Open Market Committee meeting's on 20-21 September to a 75 basis point hike.
They had previously penciled-in a 50bp hike.
Their call for the November FOMC was also raised, from 25bp to 50bp, whilst their projection for a 25bp hike at the December policy meeting was unchanged.
Goldman also noted how their index tracking financial conditions in the US had "tightened meaningfully" on the back of the hawkish shift in expectations.
"Our overall takeaway is that the FOMC will most likely delay its plan to slow the pace of tightening until after September."
As of 1050 BST, Fed funds futures had moved to price in roughly 82% odds of a 75bp hike by the Fed at its next meeting.
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