Goldman Sachs cuts forecasts for U.S. economic growth in 2023

Markets have recently been shaken by a sharp hike of interest rates performed by the Federal Reserve System of the U.S. The rates were hiked in an attempt to curb the record high inflation, which has reached the levels unseen in the last forty years.

According to an opinion voiced by Goldman Sachs, such an aggressive monetary policy of the Fed is likely to be continued until the year’s end.

In this regard, Goldman’s forecasts for the U.S. gross domestic product growth next year has been reduced.

The bank has also admitted there’s an expectation of unemployment levels to be higher than it was previously forecasted.

As it was stated by Goldman, it’s currently expected that GDP will grow next year by 1.1%, while it was previously forecasted that the growth of 1.5% is expected for a period since the last quarter of 2022 till the end of year 2023.

It is also mentioned in the last forecast that the year’s low of the S&P 500 is supposed to be reached in the middle of 2023.