Goldman Sachs Group Inc GS has lowered its US growth estimates for 2023 after the government recently upgraded its forecasts for US Federal Reserve rate hikes, reported Bloomberg.
Here are the key takeaways:
- Goldman raised its federal funds rate forecast by 75 basis points over the past two weeks for a final rate forecast of 4% to 4.25% by the end of 2022.
- Also read: How does the market feel about the Goldman Sachs Group?
- gold man raised forecasts for the unemployment rate, saying it will be around 3.7% by the end of 2022, compared to a previous call for 3.6%.
- The investment bank expects the unemployment rate to rise to 4.1% by the end of 2023 from 3.8% previously and to 4.2% by December 2024 from a previous estimate of 4%.
- Goldman economists said the growth forecast is slightly below consensus and implies a below-potential growth path they believe is needed to cool wage and price inflation.
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