Goldman Sachs Predicts Uneventful Fed Policy Review Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Stable Economic Outlook: Goldman Sachs' chief U.S. economist notes that steady inflation and job growth indicate a healthier macroeconomic environment, likely leading the Fed to keep interest rates unchanged at the upcoming policy review, thus avoiding significant market volatility.
- Rate Cut Expectations: Goldman forecasts two rate cuts this year, starting in June, reflecting a strategy to address economic slowdown, despite three cuts last year that brought the current rate range to 3.50%-3.75%.
- Labor Market Dynamics: Although U.S. employment growth slowed in December, a drop in the unemployment rate to 4.4% and solid wage growth suggest the labor market is not rapidly deteriorating, bolstering expectations that the Fed will maintain borrowing costs at its January meeting.
- Geopolitical Impacts: Trump's push for the U.S. takeover of Greenland and threats of 100% tariffs on Canada indicate his continued use of tariffs as a tool in trade and diplomatic negotiations, which could have far-reaching consequences for the market.
Analyst Views on GS
Wall Street analysts forecast GS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GS is 848.09 USD with a low forecast of 604.00 USD and a high forecast of 1048 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 954.650
Low
604.00
Averages
848.09
High
1048
Current: 954.650
Low
604.00
Averages
848.09
High
1048
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
