TechFlow news, on July 15, according to Jinshi Data, Jan Hatzius, Chief Economist at Goldman Sachs, said the Federal Reserve has sufficient reason to cut interest rates at its July meeting, though he hasn't changed his forecast that the Fed will begin rate cuts in September. The latest unemployment and inflation data suggest a federal funds rate of 4% is appropriate, compared to the current level of 5.25%-5.5%. Therefore, rate cuts are expected to start soon.
Reasons supporting a July rate cut include the volatility of monthly inflation data, which could make a September cut harder to justify, and the Fed's incentive to avoid cutting rates during the final two months of the presidential campaign. While this doesn't rule out a September cut, July appears more suitable.
