Goldman Sachs expects the Federal Reserve to begin quarterly rate cuts starting in September, totaling two cuts this year, with a terminal rate of 3.25-3.5%. The US core PCE inflation is projected to be 2.7% by December 2024, eventually converging towards 2% in the following year. Contrary to this, some analysts, including one from Lazard, foresee three rate cuts in 2024, while Deutsche Bank's economist Matthew Luzzetti anticipates a single cut in December, with some prospects for a September cut.
“Our baseline is that you get one cut this year and that it happens in December,” Deutsch Bank economist Matthew Luzzetti says, adding: “There are certainly some prospects for a September rate cut.” https://t.co/1Hfnukt3uC
Goldman: 'We continue to expect the FOMC to deliver its first cut in September, followed by quarterly cuts to a terminal rate of 3.25-3.5%."
Goldman: We continue to see a FOMC cut in September. Lazard sees 3 rate cuts in 2024 https://t.co/scNhAJSqEv
While the Fed has made it clear that it won’t consider cutting rates until at least September, one analyst is expecting a whopping seven cuts in a row. https://t.co/WaVQxlttVS
#Fed policy: GS expects quarterly #Fed rate cuts beginning in Sept, for a total of 2x cuts this year – US core PCE #inflation is expected to stand at 2.7%Y by Dec 2024 before converging toward 2% next year, chart @GoldmanSachs https://t.co/69mmelM1xK