Goldman Sachs Expects Four Rate Hikes In 2022. It’s Not All Bad News For Stocks

Jan 10, 2022

Goldman Sachs Expects Four Rate Hikes In 2022. It’s Not All Bad News For Stocks

Goldman Sachs now forecasts that the Fed will raise interest rates four times this year. The central bank might start cutting its balance sheet in July.

Bond rates spiked previously after the Federal Reserve's December minutes hinted at a March rate rise and disclosed conversations about shrinking the bank's $9 trillion balance sheet. The yield on the 10-year Treasury note increased 27.3 basis points to 1.769% the previous week, the most considerable weekly jump since September 2019. The yield increased slightly more early Monday, approaching 1.78%.

Additionally, the minutes prompted Goldman's senior economist Jan Hatzius to add a December rise to prior estimates for March, June, and September increases. "Reducing labor market slack has increased Fed members' sensitivity to upside inflation threats while decreasing their sensitivity to downside growth risks," he stated late Sunday.

He also mentioned the Federal Open Market Committee's (FOMC) debates over the Fed's balance sheet, which he said demonstrated a "greater sense of urgency than it was predicted."

Goldman now expects the balance sheet runoff to begin in July, one month earlier than previously forecasted in December, but added that it might occur much sooner. "With inflation likely remaining far over goal at that time, we no longer believe that the beginning of the runoff will serve as a replacement for a quarterly rate rise," Hatzius noted.

However, it is not all terrible news for stocks, which have been battered recently by increasing bond rates. Goldman's analysts anticipate a slowdown of the rising trend in bond yields in the following weeks, which may enable stock prices – which are sometimes more vulnerable to movements in bond yields than to their level – to regain some of their lost ground.

Subscribe Our Newsletter

Inflation Is Out Of Control, And It May Make The Fed Trigger Happy
Inflation Is Out Of Control, And It May Make The Fed Trigger Happy

After the government revealed that consumer prices were running at an all-time high in January, 10-year Treasury rates finally crossed the psychologically important 2% mark on Thursday, sending equities into a spiral.

Banks and Finance
Kashkari Says Fed Shouldn’t Overreact to Temporary Inflation
Kashkari Says Fed Shouldn’t Overreact to ‘Temporary’ Inflation

President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, stated that the Federal Reserve should not overreact to inflationary pressures that are likely to be transient.

Banks and Finance
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Hazem

Crypto Ransomware – How They Happen and How to Avoid Them
Cybersecurity is a crucial issue when it comes to the Internet, online platforms, and cloud storage. The emergence of decentralized networks encouraged more outlaws to deploy malicious tactics and embezzle funds while hiding behind an untraceable pseudonym. Crypto ransomware has been rising in the last few years, especially since more entities and companies now store […]

discover
Megaphone Pattern​: How to Read & Trade with It

Hazem

Megaphone Pattern​: What Is It? How to Use It In Trading

The megaphone pattern usually happens when prices swing on both ends, especially in crypto trading and volatile markets. Here’s how you can use it.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.