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Goldman Sachs: Still expects the Federal Reserve to cut interest rates consecutively in December, January, and March

Goldman Sachs: Still expects the Federal Reserve to cut interest rates consecutively in December, January, and March

Bitget2024/11/18 13:16

Federal Reserve Chairman Powell's speech last week hinted at a possible pause in rate cuts at the upcoming meeting, which has upset investors.

However, some economists do not believe that Powell's remarks have a negative impact on the market. Andrew Hollenhorst, Chief US Economist at Citigroup said, "US bond yields rose due to Powell's comments, but we think this is more of Powell keeping all options open rather than intentionally sending hawkish signals."

Goldman Sachs' chief economist Hazrus still predicts that "the Federal Reserve will continue to cut rates in December, January and March, followed by quarterly rate cuts in June and September. However, he believes that the FOMC may slow down its pace of rate cuts sooner than expected - possibly as early as the meetings in December or January." However unless November’s employment or inflation reports are unexpectedly strong it is unlikely that the FOMC will skip a rate cut in December.

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