Goldman Sachs: We firmly believe that the Federal Reserve will cut interest rates twice this year and four times in the first half of next year

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)