More on Goldman Sachs shifting their Federal Reserve rate cut forecast

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 Source