Goldman Sachs economists say the Federal Reserve is going to raise rates more than is currently priced into the market
GS on the jobs report last Friday:
- labor market tightening, wages rising at the fastest pace of the recovery
- "the economy really needs to slow to avoid a dangerous overheating"
Goldman forecasts:
- unemployment to 3 percent by early 2020
- wage growth 3.25 percent to 3.5 percent range over the next year or so
- inflation "is on track for a meaningful overshoot" of the Fed's 2 percent target … see risks to this forecast as tilted to a bigger increase
Goldman on the Fed
- forecasting five more quarter-point rate hikes through early 2020
- two more than pricing
- risks to forecast also are "a little tilted to the upside."
This via CNBC, who have more here at the link
