Goldman Sachs Now Sees Fed Rates Peaking at 5% in March

[RandySF]

Goldman Sachs Group Inc. economists said they now expect the US Federal Reserve to raise interest rates to 5%, higher than previously predicted.

The central bank will lift its benchmark rate to a range of 4.75% to 5% in March, 25 basis points more than earlier expected, economists led by Jan Hatzius wrote in a research report.

The route to the new peak includes increases of 75 basis points this week, 50 basis points in December and 25 basis points in February and March, they said.

The economists cited three reasons for expecting the Fed to hike beyond February: “uncomfortably high” inflation, the need to cool the economy as fiscal tightening ends and price-adjusted incomes climb, and to avoid a premature easing of financial conditions.




https://www.bloomberg.com/news/articles/2022-10-30/goldman-sachs-now-sees-fed-rates-peaking-at-5-in-march

[SoCalDavidS]

1. Fucking IDIOTS

In their pursuit to tame inflation, they're going to cause a crash in the housing market, and probably damage the economy in the short term.

Then guess where all the blame will be placed? If you said President Biden and the Democrats, then DING DING DING.

The current housing bubble may not be like it was in 2008, but there's still a bubble out there, and there are plenty of people living on their home equity lines of credit, who are going to get hurt badly when their home values decline, and they can't make the interest payments on their adjustable rate mortgages which will have gone from around 4% in 2021 to 8% by 2023.

[Buns_of_Fire]

2. We're on a wet, icy road and we need to slow down.

I know! Let's slam on the brakes! THAT'LL help!

[Celerity]

3. Raising by 75 basis points a week or so before an election is madness. Plus, that, combined

with the other raises, will like slam the economy into a fairly significant recession.

[doc03]

4. They are determined to wreck the economy God forbid workers demand

higher wages. Have to sacrifice jobs to protect profits.