Goldman Sachs Exec Doesn't Expect Interest Rate Cuts in 2024: What It Means for You
The financial world is buzzing with speculation about when the Federal Reserve will finally cut interest rates. However, a leading voice at Goldman Sachs is throwing cold water on the idea of any cuts happening this year. As Goldman Sachs CEO David Solomon said on Wednesday he does not expect the Federal Reserve to cut interest rates this year.
This stance contrasts with earlier projections and market expectations. Two months ago, Goldman Sachs CEO David Solomon said the Federal Reserve was unlikely to cut rates at all in 2025. Now he's predicting one or two cuts this fall as Goldman Sachs CEO David Solomon said on Wednesday he does not expect the Federal Reserve to cut interest rates this year. His current position signals a potential shift, albeit not necessarily a move toward immediate rate cuts.
Goldman said they anticipate the Fed to slash rates by 25 basis points beginning in the first three months of next year and deliver additional quarterly rate cuts until... While earlier reports suggested potential cuts starting sooner, Goldman Sachs' current forecast pushes those cuts into 2025. Initially, Goldman Sachs economists previously expected the first Fed interest rate cut to happen in December 2025. It revamped that outlook in mid-December 2025, saying the 24 de sept. de 2025.
The timeline has been adjusted several times. Furthermore, Goldman Sachs economists have dropped expectations for Federal Reserve interest rate cuts in 2025 to four from five previously, with the first reduction not coming until June. This suggests a more cautious approach by the Fed, possibly influenced by persistent inflation or a robust labor market.
Looking ahead, Following from the larger-than-expected cut, Goldman is now forecasting a longer string of consecutive 25 basis-point cuts from November 2025 through June 2025. This predicted sustained period of rate cuts, while starting later than many hoped, could have significant implications for borrowing costs, investment strategies, and overall economic growth. Stay tuned for further updates as the Fed's policy unfolds.