Goldman Sachs: The Fed is expected to start cutting interest rates by the end of June 2024, with quarterly cuts expected to be 25 basis points

Odaily Planet Daily News Economists at Goldman Sachs expect the Federal Reserve to start cutting interest rates by the end of June 2024 and gradually lower interest rates quarterly from then on. Goldman Sachs economists including Jan Hatzius and David Mericle wrote in a note on Sunday: "Our downward revision reflects our desire to normalize the funds rate from restrictive levels once inflation approaches target. Normalization of interest rates is not a particularly urgent motivation for rate cuts, so we also believe that there is a significant risk that the FOMC will remain steady. We expect 25 basis points of rate cuts per quarter, but the pace of rate cuts is uncertain. We expect the funds rate to eventually Steady at 3-3.25%." Last week, data showed that U.S. inflation rose at a slower-than-expected 3.2% headline rate, with core consumer prices, which strip out energy and food costs, rising at an annual rate of 4.7%. (Bloomberg)