Goldman Sachs Predicts 5 Rate Cuts by the Federal Reserve in 2024

<p>Chief economist at Goldman Sachs, Jan Hatzius, outlined 5 rate cuts coming from the Federal Reserve ahead:</p><ul><li>three in the first half of 2024<ul><li>

“We see the committee delivering at least three back-to-back 25bp cuts, probably in March, May, and June. Such an adjustment would resemble the 1995, 1998, and 2019 episodes”</li></ul></li><li>and another two in the second half of next year</li></ul><p>More widely, Hatzius expects earlier and more aggressive rate cuts from several major DM central banks, pointing to inflation running lower across the world:</p><ul><li>“Averaging across the broad group of economies that saw a large and unwanted post-covid price surge —the G10 excluding Japan plus the EM early hikers — we estimate that core inflation ran at a sequential annualized pace of 2.2% over the past three months and just 1.3% in November"</li></ul>

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