Reuters reports that Goldman Sachs has brought forward its forecast by a year to July 2022 for the first post-pandemic U.S. interest rate hike.
"The main reason for the change in our liftoff call is that we now expect core PCE inflation to remain above 3% -- and core CPI inflation above 4% -- when the taper concludes," Goldman's chief economist, Jan Hatzius, wrote in a client note.
"Large surprises on the virus, inflation, wage growth, or inflation expectations, could prompt a revision, but we think the hurdle for a change in either direction is high," said Hatzius.
Goldman Sachs also expects a second interest rate hike in November 2022 and two rate increases each year after that.