Headlines about this were front-page news earlier, and more so now.
Goldman Sachs moved the June convening of the Federal Open Market Committee (FOMC) from the June meeting to the July meeting. A note from chief economist Jan Hatzius after the inflation data.
- “We are pushing back our forecast for the first rate cut from June to July”
The Fed will cut rates twice this year (GS was previously at three cuts)
- “We continue to expect reductions on a quarterly basis thereafter, which now implies two reductions in 2024…July and November”
Hatzius quoting:
- “The FOMC was already narrowly divided on its baseline of three cuts for 2024, and we believe the Committee will need to see the series of three firmer inflation numbers from January to March balanced by a longer series of weaker numbers in the following months.”
Jan Hatzius, chief economist at Goldman Sachs
This article was written by Eamonn Sheridan at www.forexlive.com.
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