14 August 2023
Goldman Sachs forecasts a rate cut by the Federal Reserve in the second quarter of 2024, likely by 0.25 percentage points, as the bank seeks to control inflation while addressing concerns over the US economy’s stability. Despite the present high interest rate, the highest in over 20 years, Fed Chair Jerome Powell’s main concern remains inflation, which was 3.2% in July, above the targeted 2%. Powell has stated that while inflation is decreasing, the future remains uncertain. Investors are concerned that continuous rate hikes might lead to a recession.