Adding to the hawkish Fed outlook already this morning from this:
A piece on the Federal Reserve outlook from Goldman Sachs via Bloomberg over the weekend.
GS are looking for 5% by March '23. This is up 25 basis points from their previous forecast. GS project:
- +75 basis points at the meeting this week (meeting is November 1 and 2)
- +50 bp in December
- +25 bbp in February
- +25bp in March
GS cite 3 three reasons for hike beyond February:
- "uncomfortably high" inflation
- its necessary to slow the economy as fiscal tightening ends and price-adjusted incomes rise
- avoiding a premature easing of financial conditions
Graph from the Fed, the Banks's funds rate:
