“The U.S. 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,” Brendan Murray reports for Bloomberg.

“”The New York-based investment banking and securities firm raised its growth outlook for 2018 to 2.5 percent and lowered its forecast for unemployment to 3.7 percent by the end of 2018, said Goldman chief economist Jan Hatzius, a co-author of the note, which was released by email late Friday,” Murray reports. “Before the latest revision the most recent Goldman Sachs forecast for 2018 growth was 2.4 percent, according to forecasts compiled by Bloomberg.”

“The U.S. jobless rate, which was 4.1 percent in October, may reach 3.5 percent in late 2019, Goldman predicted,” Murray reports. “That would be the lowest level since the late-1960s.”

“‘Our projections would imply an evolution over the current cycle from the weakest labor market in postwar U.S. history to one of the tightest,’ the economists said in a summary of their report. ‘We expect that a tight labor market and a more normal inflation picture will lead the Fed to deliver four hikes next year,'” Murray reports. “In the world’s largest economy, the risk of a recession in the near term ‘still looks fairly limited,’ the Goldman economists wrote.””

Read more in the full article here.

MacDailyNews Take: Boom!

This certainly bodes very well for the economy in general and for makers of coveted goods, like Apple, in particular.

Now, bring on the much-needed U.S. personal income and corporate tax reform and repatriation tax holiday!

SEE ALSO:
American consumer confidence soars to highest level since December 2000 – October 31, 2017
U.S. jobless claims plunge to lowest level since 1973 – October 19, 2017
U.S. economy picks up steam; second-quarter GDP up 3.0% reflecting robust consumer spending and strong business investment – August 30, 2017
U.S. consumer confidence shows Americans upbeat on jobs, economy – July 25, 2017