Goldman Sachs predicts the global economy will top expectations in 2024, driven by strong income growth and confidence that the worst of rate hikes is already over.

The investment bank forecasts the world economy to expand 2.6% next year on an annual average basis, above the 2.1% consensus forecast of economists polled by Bloomberg. The U.S. is expected to outpace other developed markets again with estimated growth of 2.1%, Goldman said.

Goldman also believes that the bulk of the drag from monetary and fiscal tightening policies is over.

The Federal Reserve's inflation fight is all but over, there is no recession in sight and interest rates will start coming down around this time next year, according to a new forecast from Goldman Sachs Economics Research.

"The hard part of the inflation fight now looks over," Goldman Sachs economists declared in a note on Sunday.

The latest reading on inflation comes out Tuesday with the release of the consumer price index for October. Economists polled by Dow Jones expect it to drop to 3.3% on an annualized basis, down from September’s 3.7%.

Goldman Sachs on Monday released an analysis finding that a government shutdown before the end of the year is unlikely — although it remains a possibility early next year, given that lawmakers may opt for a short-term funding bill.

The U.S. economy has a better chance of skirting a recession next year than previously believed, according to Goldman Sachs strategists.

In a Tuesday analyst note, Goldman economists led by Jan Hatzius lowered their probability of a recession starting in the next 12 months to 15% from an earlier 20% forecast, citing cooling inflation and a surprisingly resilient labor market.

A former Goldman Sachs employee is accusing the investment bank of fostering a “culture of bullying” where workers “sobbed through meetings” in a $1.1 million lawsuit filed in London.

Ian Dodd — who worked in Goldman’s London offices as the bank’s global head of recruiting from 2018 to 2021 — argued in his suit that the company’s “dysfunctional” workplace led to his own mental breakdown, according to court documents obtained by the Financial Times.

Roughly 200,000 to 250,000 new manufacturing jobs could be added in the U.S. over the next two years, according to a new estimate from Goldman Sachs.

Why it matters: The increase, which amounts to about 2% of current manufacturing employment levels, is partly due to the incentives and investments for the semiconductor and green technology sectors included in the Biden administration's signature bills, the Inflation Reduction Act and the CHIPS and Science Act.