Goldman Sachs: Still Expects Fed to Cut Rates in December, January and March

According to Jin10 data, on November 18th, Shenzhen TechFlow News reported that Fed Chairman Powell’s speech last week hinted at a possible pause in rate cuts at the upcoming meeting. This news has disappointed investors. However, some economists do not believe that Powell’s remarks will have a negative impact on the market. Citigroup’s chief US economist Andrew Hollenhorst said, “US bond yields have risen due to Powell’s remarks, but we believe this is more of a performance of Powell keeping all options open rather than intentionally sending a hawkish signal.”

Goldman Sachs chief economist Hazus still expects the Fed to cut interest rates in December, January, and March in a row, followed by a quarterly rate cut in June and September, but he believes the FOMC may slow down the pace of rate cuts, which could occur as early as the December or January meeting. However, unless the November employment or inflation reports are unexpectedly strong, the likelihood of the FOMC skipping a rate cut in December is small.