Goldman Pushes Back Bet on First Fed Interest-Rate Cut to June
Traffic passes the Marriner S. Eccles Federal Reserve building in Washington, DC.
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Goldman Sachs Group Inc. economists have pushed back their view on when the Federal Reserve will begin cutting interest rates to June after parsing recent comments from the central bank and minutes of its January meeting.
The US investment bank has dropped its forecast for a May cut and now expects four reductions this year, versus five previously, with moves in June, July, September and December. It now sees four more cuts next year, versus a prior three, leaving the same terminal rate of 3.25%-3.5%, economists including Jan Hatzius wrote in a note dated Feb. 22.