That view is also gaining currency among investors, who are pricing in a similar quantum and pace of hikes. Swaps linked to Fed meeting dates indicate investors expect the Fed’s main rate to be 1.85% after the December meeting from near zero now.
Goldman Sachs Group sees the Federal Reserve raising interest rates seven times this year to contain hotter-than-expected US inflation, rather than the five it had expected earlier.
The bank sees the rates to be lifted by 25 basis points in each of the remaining meetings this year, economists led by Jan Hatzius wrote in a report to clients. The altered prediction follows US consumer prices posting the biggest jump since 1982 in January.
