Goldman Sachs on the Fed (rate hike coming in July ’22), US tax plan (less of a risk to equities) & COVID-19

Commentary from Goldman Sachs analysts over the weekend across various, but related, topics:

On the Federal Open Market Committee:

  • GS tip a US Fed rate hike in July 2022 (previously were at July 2023)
  • expect the next rate hike
    in November of 2022 then 2 hikes per year in 2023 and 2024

On coronavirus:

  • By end-2022, we
    expect the global effective protection rate against infections to
    rise by 15pp to nearly 70% on a global GDP-weighted basis, still
    below the herd immunity threshold to eliminate Delta

On the US tax plan:

  • the new tax
    plan appears to pose less of a risk to equities than what we had been
    assuming
  • Based on the new framework, we estimate 2022 EPS growth
    could increase to +5% compared with our current forecast of +2%

Commentary from Goldman Sachs analysts over the weekend across various, but related, topics:

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