Central Banks
Wall Street Divided Over Just How Aggressive Fed Cutting Will Be
- Morgan Stanley, UBS see big reductions, Goldman less so
- Goldman’s forecast is closer to market, Fed outlooks
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There’s a stark divide among Wall Street banks over how aggressive they think the Federal Reserve will be in cutting interest rates next year.
On one side are UBS Group AG and Morgan Stanley, each of which anticipate deep interest-rate cuts in 2024 as inflation cools and the economy stalls. On the other is Goldman Sachs Group Inc., where analysts expect fewer reductions and a later start.