More on Goldman Sachs shifting their Federal Reserve rate cut forecast
Justin had the news from GS on Friday:Goldman Sachs now expects the Fed to start cutting rates in September insteadNoting that GS were slow getting on this train:markets have ruled out both June and July for quite some time nowI am leaning more and more towards the view of CEO Solomon:ICYMI - Goldman Sachs CEO Solomon says Fed unlikely to cut rates this yearAnyway, back to the recent not from GS' economists. They say that the recent comments from officials at the Federal Reserve suggested a July cut would likely require not just better inflation numbers but also meaningful signs of softness in the activity or labor market data:"but after the stronger May PMIs and lower jobless claims, this does not look like the most likely outcome" Once the September cut is in, then they expect cuts once a quarter, ie a second cut in 2024 in December. This article was written by Eamonn Sheridan at www.forexlive.com.
Justin had the news from GS on Friday:
Noting that GS were slow getting on this train:
- markets have ruled out both June and July for quite some time now
I am leaning more and more towards the view of CEO Solomon:
Anyway, back to the recent not from GS' economists. They say that the recent comments from officials at the Federal Reserve suggested a July cut would likely require not just better inflation numbers but also meaningful signs of softness in the activity or labor market data:
- "but after the stronger May PMIs and lower jobless claims, this does not look like the most likely outcome"
Once the September cut is in, then they expect cuts once a quarter, ie a second cut in 2024 in December. This article was written by Eamonn Sheridan at www.forexlive.com.
