According to Goldman Sachs, the US Federal Reserve will raise interest rates four times in 2022

Goldman Sachs raised its forecast for the US Federal Reserve to four rate hikes this year from the previous forecast of three. Analysts had expected rate hikes in March, June, and September and have now added a hike in December for a total of four hikes in 2022. Bank analysts believe the interest rate will be 2.5-2.75% by the end of the year.

On Tuesday, the rate hike forecast comes just one day before Fed Chair Jerome Powell’s confirmation hearing, where the Fed chief may give new hints on monetary policy. For his part, Federal Reserve Chairman Jerome Powell promised to “prevent higher inflation from taking root” in comments prepared to speak at a congressional hearing where inflation was likely to be a central theme.

Pfizer and Moderna have announced a release date for vaccines against the Omicron strain. Pfizer plans to release the Omicron-adapted vaccine by March, while Moderna’s booster dose is scheduled for release in the fall. Moderna raised its 2022 sales forecast for the vaccine to $18.5 billion.

Oil prices have stabilized in recent days. The slight intraday decrease is usually associated with a sharp rise in COVID-19 cases worldwide, which may lead to a decrease in demand for fuel. The speech of Fed Chairman Jerome Powell to the US Senate is worth watching closely today. This speech might provoke the dollar index growth, which in turn will lead to a decline in oil prices.

Asian stock indices were mostly declining yesterday. Japan’s Nikkei 225 Index (JP225) decreased by 0.9%, Australia’s ASX 200 (AU200) lost 0.8%, while Hong Kong’s Hang Seng (HK50) was the exception, adding 0.1%. Taiwan, China, and South Korea indices also closed in the red zone at the end of the day. Yesterday, the investment director at DBS Bank in Singapore said that global markets were on the verge of inflation risks but believed the situation was under central banks’ control.