HONG KONG (Reuters) – Goldman Sachs (NYSE:GS) now expects seven 25 basis point interest rate rises from the U.S. Federal Reserve this year, up from its previous forecast of five, updating its forecast after Thursday’s U.S. inflation data.
U.S. consumer prices surged 7.5% last month on a year-over-year basis, topping economists’ estimates of 7.3% and marking the biggest annual increase in inflation in 40 years, further adding to pressure on the Fed to raise rates more aggressively.