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.