Goldman Sachs brings forward Fed rate cut forecast to September, from DecemberGoldman Sachs moves its next Fed rate cut from December to September
Goldman Sachs have pumped out more on this call. The firm expects the Federal Reserve to begin cutting interest rates three months earlier than previously forecast, the shift reflects early signs that tariff-related inflation is proving milder than expected and that disinflationary forces — including moderating wage growth and weakening demand — are building.
The firm notes that while the labour market still appears healthy, it’s become “hard to find a job”, and job openings have begun to decline. Seasonal effects and immigration shifts may weigh further on payrolls. A weaker-than-expected employment report could nudge the Fed toward action.
Although the Fed has tried to set a higher bar for cuts than in 2019, Goldman says growing uncertainty — including Powell’s approaching term end and unchanged June dot plots — leaves room for policy flexibility in the months ahead.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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