The Fed Won't Pivot, but Will Keep Hiking Into 2023, Goldman Sachs Says
The US central bank is expected to hike rates by an outsized 75 basis points once again Thursday, as it battles to curb soaring prices.
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The US central bank is expected to hike rates by an outsized 75 basis points once again Thursday, as it battles to curb soaring prices.
"This week's Fed meeting is critical for the rally to continue, pause or even end completely," Wilson said in a recent Morgan Stanley research note.
The Fed will be challenged to stick a soft-landing at this point, top economist Mohamed El-Erian warned.
"The Fed seems almost assured of raising rates by 75 basis points this week" despite investors' hopes that it will pause or pivot, the bank said.
The economy isn't weakening as fast as expected, which means the Fed will press forward with rate hikes until end of 2023, a JPMorgan strategist said.