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Goldman Sachs anticipates the FOMC will implement a 25 basis point rate cut at its September meeting, viewing recent comments from Fed officials as indicative of a preference for this move over a larger cut. The focus will shift towards labor market risks, and the firm expects to see a median dot plot implying three rate cuts in 2024.
Key Points:
Rate Cut Expectation:
Labor Market Focus:
Future Rate Projections:
Economic Projections:
Risks to Forecast:
Conclusion:
Goldman Sachs expects the FOMC to proceed with a 25bp cut while emphasizing labor market risks. The meeting is likely to provide updated economic projections and a dot plot that reflects a cautious but structured approach to future rate cuts, aligning with a focus on maintaining economic stability amid evolving labor market dynamics.
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This article was written by Adam Button at www.forexlive.com.
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