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Goldman Sachs: Still Expects the Federal Reserve to Cut Rates Twice, but Timing Remains Uncertain
Svmuu News Goldman Sachs Lindsay Rosner, Head of Multi-Asset Fixed Income at Federal Reserve, stated: “Signs of weakness in the labor market serve as a reminder that delaying interest rate cuts may come at a cost, although short-term policy remains influenced by the ongoing conflict in the Middle East.Developments in Iran and their potential implications for inflation have, to some extent, overshadowed the U.S. employment picture, making the path to potential policy normalization less clear.We expect Federal Reserve to eventually complete the remaining two ‘normalization rate cuts’ to bring rates back to neutral, but given the current uncertainty, the exact timing remains difficult to determine.” (Jin Shi)
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