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In its latest client note, the economists at Goldman Sachs project that the Federal Reserve (Fed) will hike rates more than is currently priced into the market. The report also expressed their take on the US jobs and inflation outlook.

Key Quotes (via CNBC):

Labor market tightening, wages rising at the fastest pace of the recovery.

“The economy really needs to slow to avoid a dangerous overheating”.

Unemployment to 3 percent by early 2020.

Wage growth 3.25 percent to 3.5 percent range over the next year or so.

Inflation “is on track for a meaningful overshoot” of the Fed’s 2 percent target “¦ see risks to this forecast as tilted to a bigger increase.

Forecasting five more quarter-point rate hikes through early 2020.

Two more than pricing.

Risks to forecast also are “a little tilted to the upside.”