From a research note distributed to clients late Friday by economists at Goldman Sachs (led by chief economist Jan Hatzius)
GS boosted their outlook for US economic growth outlook for 2018 to 2.5% (from their previous predication at 2.4%)
- Unemployment forecast lowered to 3.7%
GS say they expect a 'tight' labor market ... "From the weakest labor market in postwar U.S. history to one of the tightest"
This, combined with "a more normal inflation picture" will see 4 hikes from the Fed next year
GS see core inflation at 1.8% by end 2018
GS expect part of the reason for 4 hikes is a low recession risk, that the greater risk is of overheating: "containing further overheating will become a more urgent priority" next year and after.
