US gross domestic product will increase 1.1 per cent in 2023, economists including Jan Hatzius wrote in a note on Friday, compared with a forecast of 1.5 per cent previously.
The projection for 2022 was left unchanged at 0 per cent.
Goldman raised its federal funds rate forecast by 75 basis points over the past two weeks for a terminal rate forecast of 4 per cent to 4.25 per cent by the end of 2022.
“Our growth forecast is slightly below consensus and implies a below-potential growth trajectory that we believe is necessary to cool wage and price inflation.”
The Fed’s rate hike path has been a top focus for economists and investors this year as the central bank seeks to cool stubbornly high inflation.