A snippet from Goldman Sachs after the mid-week Federal Open Market Committee statement and Powell's presser. Analysts at the banks say they still accept there is a "meaningful risk" of a hike of half a percent (50bps) at some point ahead but for now have not deviated from their forecast for seven hies of 25bps each.
GS look for another 4 * 25bp hikes in 2023
GS project the high, terminal, rate for the cycle at 2.75 to 3%
GS cite:
- Powell noted that the median dot projects seven hikes this year and there are seven meetings left including today's, suggesting that our forecasted path is the default
If there is a 50bp hike GS say it'd be less likely at a meeting where the Fed announce the beginning of balance sheet, and also while the Russian invasion of Ukraine remains a major risk to the global economy.
