Goldman Sachs downgrades S&P 500 outlook for 2022

Analysts at Goldman Sachs announced a downward revision to the previously published forecast for 2022 for the S&P 500. Now they expect that by the end of the year the index will be at around 4900 points. Thus, to its current value, an increase of about 11% is predicted. The bank’s review notes that the economic situation in the country this year is likely to be more difficult than a year earlier. There is no certainty about the dynamics of the inflation rate. In addition, Goldman Sachs experts admit that the tightening of the Fed’s monetary policy will be more serious than previously thought. They predict an increase in the Fed’s key rate at each of the remaining FOMC meetings. Analysts also warned that continued high inflation, as well as larger rate hikes, could send the S&P 500 down to 3,900 and possibly even as low as 3,600. Goldman Sachs does not rule out that the tightening of the Fed’s monetary policy will cause a recession in the US economy.

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Arseny Kudrin

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