Express
Goldman Sachs predicts Fed will cut interest rates three times this year
Summary: Contrary to previous reports, Goldman Sachs predicts that the Federal Reserve will cut interest rates three times this year, with expected cuts in September, October, and December, due to weak US job growth. Analysts point out that job additions have slowed to around 30,000 per month, far below the approximately 80,000 needed for full employment, ...
Contrary to previous reports, Goldman Sachs predicts that the Federal Reserve will cut interest rates three times this year, with expected cuts in September, October, and December, due to weak US job growth.
Analysts point out that job additions have slowed to around 30,000 per month, far below the approximately 80,000 needed for full employment, and future revised data may be more negative. They believe risks are not only from trade and immigration, but compensatory hiring is fading, with growth in most industries nearing zero.
Goldman Sachs warns that despite stable unemployment rates, even a slight labor market slowdown is concerning. If the unemployment rate shows a more significant increase, it could trigger a larger 50 basis point rate cut.
Tags:
Link: Goldman Sachs predicts Fed will cut interest rates three times this year [Copy]
