Goodman Sachs has revised its outlook on the U.S. Federal Reserve’s policy, now expecting three more rate hikes this year. This comes after data released this week showed hot inflation and a resilient labor market, which points to an economy that is recovering quickly from the pandemic-induced recession of 2020.
The Fed has already raised rates twice in 2021, with two quarter-point increases taking place in March and May respectively. However, Goldman Sachs believes there will be further action taken by the central bank throughout 2023 as it looks to normalize interest rates back toward pre-pandemic levels.
Goldman Sachs’ new prediction could have significant implications for businesses across America who are looking to borrow money or refinance existing debt – higher borrowing costs can make such activities less attractive financially speaking, so companies should consider their options carefully before making any commitments during these uncertain times.
Ultimately though it appears that economic conditions are improving rapidly enough for Goldman Sachs to revise its forecast – something which bodes well for both individuals and businesses alike as we look ahead into 2022 and beyond!
Read more at Reuters
