July 23, 2024

Goldman Sachs also sees the risk of US tariff hikes

2 min read
Goldman Sachs also sees the risk of US tariff hikes
Goldman Sachs also sees the risk of US tariff hikes

Economists Goldman socks Warns of central bank risk United States Tighten more intensely than expected Monetary policy This year.

The team, led by Jan Hatzius, said in a report distributed to customers over the weekend that the situation is currently expected Interest rate hike March, June, September and December and that Federal Reserve Announce the start of the balance sheet reduction in July.

However, inflationary pressures “risks are somewhat upwards,” the report said.

Bank of Wall Street economists fear that variation Omigron Prolongs the imbalance between supply and demand and is concerned about the continued power of wage increases. The film suggests the possibility of persistent inflationary pressures in the face of persistent disruptions in supply chains, higher wage growth and a sharp rise in rents and short-term inflation expectations.

“We see the Federal Open Market Committee taking drastic action at every meeting until the picture changes,” Goldman Sachs economists said. “This creates the possibility of an interest rate hike or a balance sheet announcement, in May, of more than four rate hikes this year.”

Fed Chairman Jerome Powell and his colleagues meet this week at the Federal Open Market Committee (FOMC). Investors expect the March meeting to signal an interest rate hike.

According to Goldman economists, if the central bank takes a more aggressive stance, it will increase by 0.25 percentage points in consecutive meetings rather than 0.50 percentage points.

“That too would be an important step and some central bank officials have not yet considered it,” the economists wrote.

According to the report, inflation expectations or higher-than-expected inflation results are potential triggers for rate hikes at repeated meetings.

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