ICYMI – Goldman Sachs pushes back expectation of first Fed rate cut to Q4 2024 (from Q2)

<p>If you didn't get the memo its 'higher for longer' for the Federal Reserve:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-20-sep-fed-keeps-steady-but-shifts-to-higher-for-longer-20230920/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap 20 Sep: Fed keeps steady but shifts to higher for longer</a></li></ul><p>Justin posted on the Goldman Sachs rate cut expectation revision here:</p><ul><li><a href="https://www.forexlive.com/news/goldman-sachs-pushes-back-expectation-of-first-fed-rate-cut-to-q4-2024-20230921/" target="_blank" rel="follow" data-article-link="true">Goldman Sachs pushes back expectation of first Fed rate cut to Q4 2024</a></li></ul><p>Goldman Sachs were previously forecasting the first FOMC cut in Q2 of 2024. </p><p>Adding in a little more now from GS analysts:</p><ul><li>participants appeared to move away from the view that monetary policy tightening could weigh on growth with a long lag next year, which weakens one argument for cutting</li><li>
"We think this means that inflation will have to fall further than we previously assumed for the FOMC to cut.</li></ul>

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