NEW YORK (Reuters) – Goldman Sachs economists on Thursday said the firm remained “comfortable” with its call for five more interest rate hikes — two more than priced in financial markets — through the end of 2019.
The Goldman Sachs company logo is seen in the company’s space on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid
In a note to clients, Goldman said it feels the Federal Reserve needs to generate a significant tightening in financial conditions to slow the economy to its potential growth pace sooner rather than later, and “that this will require delivering significantly more hikes than priced in the curve.”
Reporting By Jennifer Ablan; Editing by Dan Grebler