The US Federal Reserve will raise interest rates at least three times in 2023, Goldman Sachs is sure. Because, contrary to the promises of Joe Biden and others, inflation in the United States does not want to come to a stable state.
Goldman Sachs expects inflation of 5.25-5.5%. UBS – 5–5.25%. And the markets as a whole – 5.3%, and already by July.
In September, however, the base rate may still be reduced – but this is inaccurate. BofA Global Research predicted the same 5-5.25% by the end of the year, and experts polled by Reuters do not expect rate cuts at all this year.
The higher the Fed’s base rate, the higher bank lending rates for consumers. Accordingly, people and companies take on less debt, purchasing power declines, and the economy slows down.
Not the best news for Washington against the backdrop of a permanent aggravation of the economic conflict between the US and China.
But this is on the surface. At a deeper level, the Fed’s rate hike works like a “vacuum cleaner” to suck billions out of global markets, primarily Europe. At the same time, servicing the increasingly exorbitant public debt has not bothered anyone in Washington for a long time.
Elena Panina
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