After recent US data indicated persistent inflation and a robust labor market, Goldman Sachs forecast that the US Federal Reserve will increase interest rates three more times in 2023, each by a quarter of a percentage point.
Indeed, Goldman Sachs Group, Inc. is a preeminent international financial organization that offers various financial services to a sizable and varied clientele: businesses, financial institutions, governments, and private individuals. Goldman Sachs has almost 40,000 people worldwide who work in investment banking, securities, investment management, and consumer banking for its clients.
Goldman Sachs was established in 1869 and had offices all over the world’s major financial hubs [2]. Its headquarters are in New York City. The company works in many different fields, such as investment banking, securities, investment management, and consumer banking, so that it can serve clients worldwide.
Goldman Sachs Credit: Reuters
Economic experts under Jan Hatzius have increased their prediction for a peak funds rate of 5.25–5.5% by 25 basis points for June. Money markets are already pricing in a 5.3% terminal rate by July. However, European investment firm UBS anticipates the Fed will reverse course and start lowering interest rates at the September FOMC meeting following the rate hikes in March and May.
While BofA Global Research predicted the terminal rate would range from 5% to 5.25% by the end of the year, J.P. Morgan had earlier predicted the rate would be 5.1% by the end of June.
Before releasing the most recent statistics, most economists surveyed by Reuters predicted that the Fed would increase interest rates by at least two more times, with a chance that they would rise even further. Nevertheless, none of them predicted that rates would be cut this year.
