Goldman Sachs
“In light of increased growth and news about firmer inflation, we add a rate hike of 25 basis points (bp) in June to our Federal Reserve forecast, for a top funds rate of 5.25%-5.5%,” noted the economists at Goldman Sachs led by Jan Hatzius in a note from last Thursday.
Meanwhile, the money markets are currently evaluating a terminal rate of 5.3% for July.
Bank of America
For his part, BofA Global Research also provides for a 25 basis point rise at the meeting of June of the Federal Reserve, which would place the official interest rate in a margin between 5.25% and 5.5%. Previously, had planned two rate hikes of 25 basis points each in the meetings March and May.
“He resurgence of inflation and the solid job gains make the risks of this outlook (just two interest rate hikes) too one-sided for our liking,” BofA wrote in a note to clients.
UBS
Following recent US data, the European investment bank UBS said he expected the Fed raise rates 25 basis points in their meetings of March and Maywhich could leave the rate of federal funds in 5%-5.25% range.
However, unlike their American counterpartsUBS estimated that the Fed would cut interest rates at the September meeting of this year.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
