(Bloomberg) — Goldman Sachs Group According to Inc. (NYSE) economists, there is a chance that the Federal Reserve could tighten monetary policies at each policy meeting starting in March. This would be a much more aggressive approach than what Wall Street banks currently expect.

Jan Hatzius of Goldman Sachs, one of the economists, said that they anticipate interest-rate increases in March, June and September. The central bank should also announce its intention to reduce its balance sheet by July.

But they said inflation pressures mean that the “risks are tilted somewhat to the upside of our baseline,” and there is a chance officials will act “at every meeting until the inflation picture changes.” 

“This raises the possibility of an additional hike or an earlier balance sheet announcement in May, and of more than four hikes this year,” the economists said. “We could imagine a number of potential triggers for a shift to rate hikes at consecutive meetings.”

This week, Chair Jerome Powell joined colleagues amid hopes that they would signal their willingness to raise rates from almost zero in March.

The Goldman Sachs economists suggested that there could be additional inflation surprises or an increase in long-term inflation projections. 

The omicron version’s arrival and the continued strong wage growth made them more worried about inflation.

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