Goldman Sachs has predicted that the Federal Reserve will raise interest rates four times in 2022, in March, June, September, and December.

According to Goldman Sachs Group Inc., the US Federal Reserve will most likely raise interest rates four times this year and will start shrinking its balance sheet by July at the latest.

The research note reported that the recovery in the US labor market and the hawkish signals in the minutes of the Fed meeting on December 14-15 point to a faster normalization.

In the minutes of the Fed’s 14-15 December meeting, Fed officials stated that the possibility of an interest rate hike earlier than expected due to rising inflation and the strong improvement in the employment market.

Last month, unemployment in the United States fell from 4.2 percent to 3.9 percent.