Goldman Sachs now sees the Federal Reserve hiking interest rates at every meeting for the remainder of the year as central bank policymakers look to tackle hotter-than-expected inflation.
Jerome Powell, chairman of the U.S. Federal Reserve, leaves after testifying before a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing in Washington, D.C., on Tuesday, Jan. 11, 2022.
Still, while many traders think there's a chance of a hefty half-point rate jump when policymakers meet next month, the Goldman economists think the Fed will move more incrementally to raise rates. The Fed has not raised rates since December 2018. St. Louis Fed President James Bullard, one of the central bank's more hawkish policymakers and voting member of the FOMC this year, lent credence to the idea on Thursday, telling Bloomberg News that he wants to see "100 basis points in the bag by July 1." Under that timeline, the Fed would possibly have to factor in a super-sized hike.
A man looks at beef in the meat department at Lambert's Rainbow Market on June 15, 2021, in Westwood, Massachussetts.
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