Attention Economy


Saturday, October 30, 2021

Goldman Sachs – Mea Culpa on Rate Hike Forecasts

Goldman Now Sees Fed Hiking Rates in July as Inflation Lingers
https://www.bloomberg.com/news/articles/2021-10-30/goldman-now-sees-fed-hiking-rates-in-july-as-inflation-lingers
 
Goldman’s Hatzius Sees No Fed Hike Next Year as Growth Slows
https://www.bloomberg.com/news/articles/2021-10-11/goldman-s-hatzius-sees-no-fed-hike-next-year-as-growth-slows
 
This is what I wrote in May, 2021:
Should the Fed be less complacent about inflation risks?
https://thehill.com/opinion/finance/554058-should-the-fed-be-less-complacent-about-inflation-risks
The Fed should also abandon its commitment to maintaining near-zero policy rates until the end of 2023 and be open to an interest rate hike in 2022 if inflationary pressures become entrenched. Persistently high inflation is a slippery slope that may lead to rising inflation expectations, which may necessitate a painful monetary contraction in the future”.