Goldman Sachs and Bank of America said they expect the US to raise interest rates three more times this year, lifting their estimates after data pointed to persistent and a resilient labor market.
Markets had been predicting two more quarter-point rate hikes, in March and May, but the latest forecasts suggest the Fed could implement a third increase at its June meeting, before leveling off.
But the two banking giants pointed to recent data showing that the fight against inflation could be stalling, as the job market remains red-hot, putting upward pressure on wages.
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