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The Fed: Goldman’s Hatzius: Investors could get blindsided by a cluster of Fed hikes this year

The Federal Reserve could raise interest rates as many as four times this year, going beyond what is currently expected by most investors, Goldman Sachs’s chief economist Jan Hatzius said on Monday.

Speaking at a conference in London, Hatzius said there’s a 35% chance of a rate hike in March, placing a higher probability of an imminent increase than the broader market. According to the CME FedWatch tool, Fed fund futures are currently pricing in a 24% chance of rate jump in March.

“We are seeing upward pressure on wage growth, upward pressure on core inflation. We expect further monetary policy normalization from the Federal Reserve to a degree that goes beyond what is priced into the bond market,” Goldman’s chief economist said.

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