Commentary from Goldman Sachs analysts over the weekend across various, but related, topics:
On the Federal Open Market Committee:
- GS tip a US Fed rate hike in July 2022 (previously were at July 2023)
- expect the next rate hike in November of 2022 then 2 hikes per year in 2023 and 2024
On coronavirus:
- By end-2022, we expect the global effective protection rate against infections to rise by 15pp to nearly 70% on a global GDP-weighted basis, still below the herd immunity threshold to eliminate Delta
On the US tax plan:
- the new tax plan appears to pose less of a risk to equities than what we had been assuming
- Based on the new framework, we estimate 2022 EPS growth could increase to +5% compared with our current forecast of +2%
