Goldman Sachs Predicts Fed Rate Cuts in June and September, Significant Implications
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Timeline Adjustment: Goldman Sachs has shifted its forecast for Federal Reserve rate cuts from March 2024 to June and September, reflecting a deep analysis of economic data and inflation management, indicating that markets must adapt to a prolonged high-rate environment.
- Rate Cut Expectations: The bank now anticipates two 25-basis-point cuts, which will impact consumer borrowing costs, potentially keeping mortgage and credit card rates elevated, thereby suppressing consumer spending.
- Market Reactions: Financial markets have begun to adjust, with bond yields rising, reflecting reduced expectations for near-term easing, while equity markets show resilience, indicating investor confidence in economic strength.
- Global Economic Context: The global economic landscape is complex, with European and UK central banks also maintaining cautious stances, which reduces the pressure for premature Fed easing and may lead to coordinated adjustments in global monetary policy throughout 2024.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
