Goldman Sachs expects the Fed to accelerate the pace of reduction in bond purchases in January

The Federal Reserve is likely to double the pace of reducing its monthly bond purchases in January to $ 30 billion, Goldman Sachs strategists said Thursday, expecting it to end its pandemic-era bond buying scheme by the end of the year. mid-March 2023.

“The acceleration of the opening is likely to reflect somewhat higher-than-expected inflation over the past two months and greater comfort among Fed officials that the faster pace will not rock the financial markets,” analysts added. led by Jan Hatzius.

Despite the acceleration of the calendar in decrease, Goldman Sachs expects the Fed to start raising interest rates starting in June a total of three times in 2022.

And the American Investment Bank is one of several banks that recently raised expectations of raising interest rates for 2022 to 3x instead of twice.

The minutes of the central bank’s monetary policy meeting on November 2-3 showed that many policymakers said they would be open to accelerating the tapering of the bond purchase program if inflation persists and will move faster to raise bonds. interest rates.

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