US Interest Rates This Year

Goldman Sachs and Bank of America expect the US Federal Reserve to hike interest rates three more times this year, at present, they’re raising their estimates after data pointed to steady inflation and a strong labor market.

The Producer prices index rose in January, the most significant increase in seven months, according to data released by the Department of Labor on Thursday. Initial claims for state unemployment benefits dropped last week.

Goldman Sachs economist, led by Jan Hatzius, said in a statement on Thursday: “Considering the strong economy and low inflation news, we are adding 25 basis points (0.25%) to June’s rate hike and The Fed (Central Bank) forecast for the highest rate of 5.25% -5.50%.”

Bank of America Global Research also expects a 25bps hike at the Fed’s June meeting, pushing interest rates to 5.25% -5.50%. However, UBS estimates the Fed will ease interest rates at the September meeting this year.

Most economists surveyed by Reuters before the latest data said they expect the Fed to hike interest rates at least twice in the coming months with their risks higher than this. None of them expect to cut interest rates this year.

All investors can sell the gold at $1,843, set stop-loss at $1,853 and set take profit at $1,820.


Analyst: Mr.An Rothchanborey, Independent Analyst

Goldwell Capital Co., Ltd. endeavours to ensure the accuracy and completeness of this research report. However, as the market is subject to change, the Company and our subsidiaries do not guarantee its completeness and accuracy, and the information is for reference only. Any person shall not regard such information as Goldwell Capital Co., Ltd. on leveraged foreign exchange, precious metals, stocks, and other financial products to provide real quotes, suggestions, solicitation and inducement of investment. Guests should be aware of the risks involved in the investment, the volatility of the investment market and the risk of loss can be very big, guests must carefully consider their own financial situation and investment purposes, to decide the direction of investment and the kind of investment products that are suitable for their owns.
Generic filters
Quick Links
How Can We Help You?

Contact us at the Goldwell Capital office nearest to you or submit a business inquiry online.

Scroll Up