Goldman Sachs now forecasting a 75bp interest rate rise from the FOMC this week

Goldman Sachs leaning on the Wall Street Wall Street Wall Street is part of the Financial District in New York City and one of the most iconic streets in the world. It is synonymous with US financial markets, and home to the world’s two largest stock exchanges by market capitalization – the New York Stock Exchange and NASDAQ.The area is also home, be it presently or historically to many other key exchanges. This includes the New York Mercantile Exchange, the New York Board of Trade, the New York Futures Exchange (NYFE), and the former American Sto Wall Street is part of the Financial District in New York City and one of the most iconic streets in the world. It is synonymous with US financial markets, and home to the world’s two largest stock exchanges by market capitalization – the New York Stock Exchange and NASDAQ.The area is also home, be it presently or historically to many other key exchanges. This includes the New York Mercantile Exchange, the New York Board of Trade, the New York Futures Exchange (NYFE), and the former American Sto Read this Term Journal article published earlier:

• WSJ Fedwatcher speculates about a 75 basis point hike

GS:

• An article in the Wall Street Journal by Nick Timiraos reported that Fed officials are likely "to consider surprising markets with a larger-than-expected 0.75-percentage-point interest rate increase at their meeting this week."The article is a departure from another article that Nick Timiraos published yesterday that characterized such a move as "unlikely."Our best guess is therefore that the article is a hint from the Fed leadership that a 75bp rate hike is coming at the June FOMC meeting on Wednesday.

Revised forecasts from GS:

• 75bp hikes in June and July.This would quickly reset the level of the funds rate at 2.25-2.5%,the FOMC's median estimate of the neutral rate.
• 50bp hike in September
• 25bp hikes in November and December,for an unchanged terminal rate of 3.25-3.5%.
• We are also revising our forecast of the dot plot. We now expect the median dot to show 3.25-3.5%at end-2022, the same as our forecast. We expect the median dot to show two further hikes in 2023 to 3.75-4%, followed by one cut in 2024 to 3.5-3.75%.

Earlier:

• The 2 reasons JP Morgan are forecasting a 75bp FOMC rate hike on Wednesday 15 June 2022

Wonder if JPM and GS were reading ForexLive on Sunday evening?

• Market consensus for the FOMC this week a 50bp interest rate hike, but is 75bp off the table?