Goldman Sachs chief economist Jan Hatzius remains confident that the Fed will deliver on its previous hint of two rate cuts by the end of the year, especially after a weaker-than-expected jobs report last week. He expects that to continue through the first half of 2025.
"We expect the Fed to cut rates four times in a row in the first half of 2025, to 3.25%-3.5% eventually, but we have greater uncertainty about both the pace of the Fed's rate cuts and its ultimate target next year," Hatzius said in a report published Sunday, adding that his forecast is about 50 basis points higher than the market consensus. (Jinshi)