Goldman ups Fed hike forecast to 7 rate increases in 2022 after CPI data

FILE PHOTO: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly

HONG KONG (Reuters) – Goldman Sachs now expects seven 25 basis point interest rate rises from the U.S. Federal Reserve this year, up from its previous forecast of five, updating its forecast after Thursday’s U.S. inflation data.

U.S. consumer prices surged 7.5% last month on a year-over-year basis, topping economists’ estimates of 7.3% and marking the biggest annual increase in inflation in 40 years, further adding to pressure on the Fed to raise rates more aggressively.

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