Daily Management Review

Goldman Sachs expects four Fed rate cuts in 2024


US bank Goldman Sachs Group revised the Federal Reserve's (Fed) federal funds rate trajectory for 2024 in light of recent remarks made by Fed officials and the meeting minutes from January.

Rather of the five cuts that Goldman had originally anticipated, the rate will now be lowered four times in 2024. June is anticipated to see the first 25 basis point (bps) reduction.

The Fed's Board of Governors member Michelle Bowman stressed that the moment is not yet right for a rate reduction. Governor Neel Kashkari of the Federal Reserve Bank of Minneapolis stated that he would prefer to hold off on lowering interest rates for a little while longer. The summer will see a shift in monetary policy toward a more neutral course, according to Atlanta Federal Reserve Chairman Raphael Bostic.

These comments collectively suggest that the majority of Fed policymakers are hesitant to quickly ease the monetary policy, a sentiment that is mirrored in Goldman's most recent projection.

In 2025, the bank projects four additional rate reductions.

source: cnn.com