Goldman Sachs sees four 2018 rate hikes as US growth gains

WASHINGTON: The US economy is heading into 2018 with strong momentum that’s likely to boost wages and inflation more broadly, requiring the Federal Reserve to raise interest rates four times next year, Goldman Sachs Group Inc economists said in a research note.

The New York-based investment banking and securities firm raised its growth outlook for 2018 to 2.5% and lowered its forecast for unemployment to 3.7% by the end of 2018, said Goldman chief economist Jan Hatzius, a co-author of the note, which was released by email late Friday.