The large American investment bank Goldman Sachs predicts that the Federal Reserve will raise interest rates in the United States even more than previously thought.
The economists predict that interest rates will rise by up to 5 percent in March, 25 basis points more than the bank previously expected.
A Goldman Sachs report said that the central bank continues to raise interest rates to counter “uncomfortably high” inflation in the US. In addition, according to the investment bank, this step is necessary to allow the economy to cool down.
The Fed will hold a policy meeting next Tuesday and Wednesday. Interest rates are expected to be revised upwards by 75 basis points for the fourth time in a row to counter the high inflation in the US.
This year, betting on a less aggressive approach from the Fed has been a dangerous game for investors. Stocks recovered from lows several times on this expectation but were crushed again by new signs of continued inflation or a central bank determined to keep up its rate hikes.