Goldman Sachs Strategists Expect Two More 25bp Rate Cuts in 2024 Following Powell's Speech
In a recent speech, Federal Reserve Chair Jerome Powell hinted at the possibility of two more 25 basis point rate cuts in 2024. Despite emphasizing that the Fed is not in a hurry to cut rates quickly, Powell mentioned that the pace of cuts will depend on economic data.
Powell highlighted the strength of the overall economy, pointing to recent revisions in gross domestic income and the saving rate. However, he expressed caution about the labor market, noting a decrease in job creation and an uptick in the unemployment rate projection.
Goldman Sachs strategists interpreted Powell's remarks as consistent with their forecast for rate cuts in November and December. They see the decision between 25bp and 50bp cuts in November as a close call, following the Fed's recent 50bp rate cut.
Analysis: Powell's speech suggests that the Fed is closely monitoring economic data to determine the pace of rate cuts. This could impact various financial instruments and the overall market sentiment. Investors should pay attention to future Fed announcements and economic indicators to make informed decisions about their investments.
