Goldman Sachs laid off some 3,000 people this week.REUTERS/Andrew Kelly The Fed's most aggressive policy-tightening cycle since the 1980s has seen interest rates rise from near-zero to over 5%. Goldman Sachs sees the central bank holding interest rates high until at least mid-2024. Economists at the Wall Street bank believe the Fed may not rush to stimulate an already-strong economy. Goldman Sachs economists don't expect the Federal Reserve to start cutting interest rates until at least mid-2024, and predict the central bank will introduce steady quarter-point reductions from that point onward.The Fed's most aggressive monetary-tightening campaign since the 1980s saw interest rates rise from near zero to over 5% since last spring, in efforts to combat rampant inflation in the economy.And though Goldman sees rate cuts as the natural next step in the Fed's policymaking, its economists don't see this happening before at least the end of the second-quarter of 2024 – later than the market consensus.In a note published at the weekend, Goldman economists Jan Hatzius and David Mericle explained the reasoning behind their predictions.
Comment on The Fed may not begin cutting interest rates until mid-2024, Goldman Sachs economists say
jwilkins@insider.com (Joseph Wilkins), Business Insider
Tue, 08/15/2023 - 6:12am
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