Consistent high inflation with almost full employment will force the central bank to increase interest rates at least four times in 2022, as per the prediction by Goldman Sachs.
Jan Hatzius expressed on Sunday that he now anticipates the central bank to enact four rate hikes this year and will take a more aggressive path than it indicated a month ago.
Hatzius said, “Declining labor market slack has made Fed officials more sensitive to upside inflation risks and less sensitive to downside growth risks. We continue to see hikes in March, June, and September and have now added a hike in December for a total of four in 2022.”
Goldman Sachs had earlier predicted three hikes, in tune with the prediction of central bank officials in December.
