Goldman Sachs cuts 2023 US GDP forecasts to 1.1%

The influential financial firm now expects the Federal Reserve to hike policy rates.

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It would 75 basis points at its meeting next week

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50 basis points previously and sees 50 bp hikes in November and December, with the fed funds rate peaking at 4-4.25% by the end of the year

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This higher rates path combined with recent tightening in financial conditions.

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It implies a somewhat worse outlook for growth and employment next year.

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GS sees the unemployment rate at 3.7% by year-end, up from 3.6%, and rising to 4.1% by the end of 2023, from 3.8% previously.

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Billionaire investor Ray Dalio predicts 20% decline in equity market if Fed hikes rates to 4.5%

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