Economics
Goldman Economists Now See Global Contraction, Fed Cuts
- Baseline is for ‘short-lived’ global contraction: Goldman
- Goldman baseline for 75 basis points of Fed cuts through June
Photographer: Ron Antonelli/Bloomberg
This article is for subscribers only.
Goldman Sachs Group Inc. economists said they now expect the coronavirus to inflict a “short-lived global contraction” on the world economy that forces the U.S. Federal Reserve to slash interest rates in the first half of this year.
In a report released on Friday, the Goldman economists led by Jan Hatzius said the outbreak of the deadly virus meant they now predict global gross domestic product to shrink on a quarterly basis in the first two quarters of this year before rebounding in the second half.