Goldman Sachs Predicts Federal Reserve Timeline for Slashing Interest Rates by 0.25% per Quarter: Report

Economists at the banking giant Goldman Sachs think the U.S. Federal Reserve will begin lowering its benchmark interest rate in the second quarter of 2024.

The bank’s economists also predict that the Fed will skip rate hikes next month and in November.

Buy physical gold and silver online

“The cuts in our forecast are driven by this desire to normalize the funds rate from a restrictive level once inflation is closer to target.”

The Goldman economists aren’t the only ones thinking this way. Fundstrat Global Advisors managing partner Tom Lee also predicted in an interview with CNBC earlier this week that the Fed is finished with rate hikes.

“I think [last week’s] CPI (consumer price index) report kind of shows that inflation’s on a glide path lower. The things that are still inflationary – like auto insurance, motor vehicle repair – aren’t things the Fed’s necessarily trying to target with higher rates, but it’s more of a supply-chain work-through.

So I think over the next three months, we could see core CPI at 0.2 or less. That would really allow the Fed to breathe easier, and that’s why I think the last hike was July.”

The CPI is relied on as a proxy to track inflation rates. Economists and traders tend to pay close attention to the metric because it can signal whether the Fed will continue to raise interest rates or not.

Last week’s CPI report indicated consumer prices rose 0.2% in July, which the White House described as “at market expectations.”

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Goldman Sachs Predicts Federal Reserve Timeline for Slashing Interest Rates by 0.25% per Quarter: Report appeared first on The Daily Hodl.

About the author

Why invest in physical gold and silver?
文 » A