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Goldman Sachs expects four Fed rate hikes this year -Breaking


© Reuters. FILE PHOTO – The Goldman Sachs logo can be seen in New York City on the New York Stock Exchange’s trading floor. This is New York City (NYSX) November 17, 2021. REUTERS/Andrew Kelly

(Reuters] – U.S. Federal Reserve to Increase Interest Rates Four Times This Year and Start the Runoff Process for Its Balance Sheet as Soon as July, Goldman Sachs’ (NYSE:) economists stated.

The U.S. investment bank’s research unit had predicted that the Fed would increase rates in March, September and June, but now it expects another rise in December.

According to economist Jan Hatzius, the expected rate for investment banks is just slightly higher than what market analysts expect in 2022. But “the gap grows significantly in subsequent year,” he wrote in a Sunday note.

Traders ramped up bets for rate hikes this year after the U.S. central bank’s minutes from the December meeting suggested an earlier-than-expected rate hike and the possibility the Fed may cut its bond holdings sooner than many initially thought.

Mary Daly of the San Francisco Fed, who has not yet voted, stated that she believes it is possible for the bank to shrink its $8 trillion-plus balance soon, after raising rates twice.

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