US Fed to Lift Interest Rate 3 Times Next Year, Goldman Sachs Forecasts

Jan Hatzius, Goldman Sachs' chief economist, wrote in a note on December 15th that the US Fed will continue to lift interest next year.

He expected three additional 25bp rate hikes in February, March and May. The interest rate peak for this cycle will be 5% to 5.25%. "We are doubtful that the inflation path that we forecast for next year would be enough to provide that confidence (in a rate cut)," Jan Hatzius said.

On Wednesday, the Fed lifted the interest rate by 50bp.