Goldman Sachs chief economist expects 100bp of Fed rate hikes in coming year

Author: Eamonn Sheridan | Category: Central Banks

A piece from Goldman Sachs economists Zach Pandl and Jan Hatzius:

  • Federal Reserve looks likely to begin raising short-term interest rates in December
  • Based on our economic forecasts, we currently expect the FOMC to raise the funds rate by 100bp next year
  • One hike per quarter
  • We see the risks to this forecasts as skewed to the downside at the moment

For economic growth in 2016:

  • US economy likely to be driven by domestic demand ... in particular consumer spending
  • Forecast GDP will increase by 2.25% Q4/Q4 next year
  • Narrow and broad measures of unemployment have fallen significantly
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose