Goldman Sachs strategist: The Federal Reserve (FED) is expected to cut interest rates twice this year, and a weakening labor market may trigger a loosening cycle.
On June 19, Simon Dangoor, head of fixed income macro strategy at Goldman Sachs Asset Management, stated that the tone of the Federal Reserve meeting was moderate. Although recent inflation expectations were raised, it is still expected that there will be two interest rate cuts this year.
He said: “The hints from FOMC members are that they continue to expect the recent uptick in inflation to be largely temporary, and their tolerance for rising unemployment remains very low.” “We expect The Federal Reserve (FED) to remain on hold at next month’s meeting, but we believe that if the labor market weakens, a new round of easing may begin later this year.”
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Goldman Sachs strategist: The Federal Reserve (FED) is expected to cut interest rates twice this year, and a weakening labor market may trigger a loosening cycle.
On June 19, Simon Dangoor, head of fixed income macro strategy at Goldman Sachs Asset Management, stated that the tone of the Federal Reserve meeting was moderate. Although recent inflation expectations were raised, it is still expected that there will be two interest rate cuts this year.
He said: “The hints from FOMC members are that they continue to expect the recent uptick in inflation to be largely temporary, and their tolerance for rising unemployment remains very low.” “We expect The Federal Reserve (FED) to remain on hold at next month’s meeting, but we believe that if the labor market weakens, a new round of easing may begin later this year.”