Goldman Looks for Four Fed Rate Hikes in 2022

The video discusses the anticipation of the first Fed rate hike since the pandemic, highlighting its global impact driven by the US. Goldman Sachs forecasts four rate hikes in 2022, influenced by strong labor data and low unemployment. The video also covers the implications of a balance sheet runoff starting in July, affecting long-term debt and the yield curve. Despite Goldman's forecast, the market already anticipates similar changes, with economists predicting three rate hikes and the market expecting a 1% increase by year-end.

What is the primary driver of the global story regarding the Fed rate hikes?

• International Monetary Fund

• European Central Bank

• Asian Development Bank

• US Federal Reserve

What economic indicators are influencing the decision for rate hikes?

• Decreasing consumer spending

• High inflation and low GDP

• Strong labor data and rising wages

• Increasing trade deficits

When does Goldman Sachs predict the balance sheet runoff will start?

• October

• July

• April

• January

How many rate hikes does Goldman Sachs forecast for 2022?

• Five

• Two

• Three

• Four

What is the market's anticipated rate by the end of the year?

• 1.5%

• 2%

• 1%

• 0.5%