TechFlow news: Goldman Sachs predicts the Federal Reserve will carry out two rate cuts in 2024, with the first one brought forward to the third quarter.
The rate cuts aim to respond to cooling inflation, and the federal funds rate is expected to decline to 4.875% by the end of 2024. Despite stronger-than-expected labor market data, traders still anticipate rate cuts next year, especially in light of recent inflation figures.
Goldman Sachs economists noted that healthy growth and labor market conditions could delay rate cuts, but easing inflation data might trigger a move toward standard rate reductions earlier. While some may predict additional cuts based on inflation data, others may remain cautious to prevent the market from pricing in cuts too soon.
