The Federal Reserve has been keeping interest rates low for years, but that could be changing soon. Experts from Bank of America, Goldman Sachs, JPMorgan, and UBS have all recently offered their forecasts on potential future Federal Reserve interest rate increases.
Bank of America believes that the Federal Reserve will raise interest rates by the end of 2021. They anticipate that the Fed will increase rates in quarter-point increments, beginning with a 0.25% hike in December 2021. Bank of America also predicts that the Fed will keep rates low through 2022, with no further increases until 2023.
Goldman Sachs is slightly more optimistic than Bank of America, predicting that the Fed will raise rates by 0.25% in the second half of 2021. They also believe that the Fed will continue to raise rates in quarter-point increments until they reach 2.5% by the end of 2022.
JPMorgan forecasts that the Fed will raise interest rates by 0.25% in the first half of 2022, followed by another 0.25% increase in the second half of the year. They anticipate that the Fed will keep rates at this level until 2024.
Finally, UBS predicts that the Fed will raise interest rates by 0.25% in the second half of 2021, followed by another 0.25% increase in the first half of 2022. They believe that the Fed will keep rates at this level until 2025.
It is important to remember that these are all forecasts and are subject to change depending on economic conditions. The Federal Reserve will make its decision based on its assessment of the current economic climate and its outlook for the future. It is also important to note that any increases in interest rates could have a significant impact on borrowing costs and other financial markets.
Overall, experts from Bank of America, Goldman Sachs, JPMorgan, and UBS all agree that the Federal Reserve will likely raise interest rates in the near future. However, the exact timing and magnitude of these increases remain to be seen.
Source: Plato Data Intelligence: PlatoAiStream