Federal Reserve's FOMC meet this week, Goldman Sachs expect on hold, with a cut in March

<p>The Federal Open Market Committee (FOMC) statement is due at 1400 US Eastern time on Wednesday, January 31</p><p>The consensus is for the Committee to leave the Fed Funds rate on hold at 5.25-5.50%</p><p>The consensus is also for the first rate cut to come in Q2, although late in Q1 is well-sipported also.After this week the Committee met again on March 19-20.</p><p>Goldman Sachs have been tipping a March cut for some time, and still are:</p><p>We continue to expect … 5 cuts in total in 2024</p><p>GS cite two main planks for their view:</p><ul><li>progress on inflation has already surpassed the threshold the FOMC has given</li></ul><p>Goldman Sachs says the Fed won't waiting for inflation to hit 2% before cutting, they'll cur prior to the number being in the data. </p><ul><li>while the labor market is providing "additional reasons for the FOMC to cut sooner rather than later"</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.