Weekend note from Goldman Sachs on their Federal Open Market Committee expectations, via Bloomberg (may be gated).
GS forecast FOMC hikes in March, June, September and December, but ...
- “We see a risk that the FOMC will want to take some tightening action at every meeting until that picture changes,”
- “This raises the possibility of a hike or an earlier balance sheet announcement in May, and of more than four hikes this year.”
This seems a little over the top from GS. GS say the Fed would hike in 25bp increments at consecutive meetings. GS don't see 50bp hikes. as likely.