The company said in a note published Friday that GDP growth is expected at 1.1% next yeardown from its previous forecast of 1.5% expansion from the fourth quarter of 2022 to the end of 2023. In addition, it expects to The unemployment rate will stand at 3.7% at the end of the yearcompared to the previously expected 3.6%, and It will rise to 4.1% by the end of 2023Compared with the previous 3.8%.
financial company You expect the Fed to raise interest rates by 75 basis points At its meeting next week, up from 50 basis points previously, it expects a 50 basis point rise in November and December, with the Fed’s benchmark interest rates peaking at 4-4.25% late in the year.
“This trajectory of higher rates, combined with the recent tightening of financial conditions, Indicates somewhat worse prospects for growth and hiring next year,” Goldman wrote.
A similar comment was made by my managers European Central Bankwho expressed concern about interest rates entering a “tight area”.
this week Markets reacted to lowering demand or activity expectations That could lead to a scenario of freezing global economic activity: On Friday, shares of logistics giant FedEx collapsed more than 20% ahead of a company report that forecast a drop in consumer demand, an indication of slowing activity. Something similar happened with the International Energy Agency’s fuel demand forecast, which expects fourth-quarter fuel demand to fall due to lower activity, mainly due to the slowdown in China due to restrictions due to Covid-19. . Oil also collapsed and Wall Street because of these expectations
The Fed will determine its interest rate update on September 21.