Goldman Sachs Envisions Gradual Fed Rate Cuts
posted 14 Aug 2023
Their economists anticipate a reduction in interest rates by late June next year, following a gradual quarterly decrease pattern.
“The cuts in our forecast are driven by the desire to normalize the funds rate from a restrictive level once inflation is closer to the target,” says Jan Hatzius, a senior economist at Goldman.
Goldman forecasts rate cuts in Q2 2024, expecting 25 basis point reductions per quarter with pace uncertainties.
“We expect the funds rate to eventually stabilize at 3-3.25%,” say their economists.
“The cuts in our forecast are driven by the desire to normalize the funds rate from a restrictive level once inflation is closer to the target,” says Jan Hatzius, a senior economist at Goldman.
Goldman forecasts rate cuts in Q2 2024, expecting 25 basis point reductions per quarter with pace uncertainties.
“We expect the funds rate to eventually stabilize at 3-3.25%,” say their economists.
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