Goldman Sachs predicts when the US Federal Reserve will cut interest rates

Goldman Sachs predicts when the US Federal Reserve will cut interest rates

Analysts at the US investment bank Goldman Sachs expressed, on Wednesday, their optimism regarding the US Federal Reserve’s interest rate cuts that will be decided by the Federal Open Market Committee during the coming period.

Goldman Sachs expected that the Federal Reserve would begin reducing interest rates at the next September meeting, and indicated that it is likely that the cuts will continue by 25 basis points each quarter, especially with the bank’s expectations of a smooth decline in the economy in light of the recent data.

It should be noted that Bank of America had made clear that it expects the US Federal Reserve to gradually reduce interest rates later this year, given that the economic activity and employment data in the United States confirm the slowdown in the economy.

In this context, Bank of America analysts said that the labor market in the United States continues to slow, so the US Federal Reserve is expected to begin the cycle of reducing interest rates at the Federal Committee meeting next December, but the bank’s experts acknowledged the risks of early price cuts.