Federal Reserve terminal rate expected 5-5.25%, ECB 3.25% (Goldman Sachs forecast)

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Goldman Sachs Goldman Sachs Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It was founded in 1869 and is one of the largest and most well-known investment banks in the world.Goldman Sachs has a mixed reputation. On one hand, it is known for its expertise in investment banking and its role in many high-profile financial deals. On the other hand, it has faced criticism and controversy over the years, including accusations of unethical business practices and con Read this Term discusses its expectations for the Fed The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term and ECB policy trajectories for the remainder of this year.

• "We expect the Fed to deliver 25bp hikes in March and May for a peak funds rate of 5.00-5.25%, although more hikes may be needed if the economy reaccelerates as the drag on growth from past policy tightening fades," GS notes.
• "We expect the ECB to hike by 50bp in March before stepping down to a final 25bp hike in May for a terminal rate of 3.25%, given the sharp improvement in the outlook for headline inflation and diminished risks of strong second-round effects. On balance sheet policy, we expect the ECB to stop reinvestments completely after June, when the recently announced APP run-off of €15bn per month starting in March 2023 ends," GS adds.

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Note the Goldman Sachs Federal Reserve caveat:

• more hikes may be needed if the economy reaccelerates as the drag on growth from past policy tightening fades

Seems a sensible thing to say.