Editor's PiCK

Goldman Sachs executive "Fed expected to cut rates by 25bp this week"

Source
JH Kim

Summary

  • Goldman Sachs said it expects the Fed to cut the policy rate by 25bp this week.
  • CFO Denis Coleman said that regarding the 2026 rate path, there would be two additional cuts after a rate pause at the start of the year.
  • He said the Fed would maintain a wait-and-see stance in early next year and could ease further later depending on economic and inflation conditions.
photo=Shutterstock
photo=Shutterstock

Goldman Sachs said it expects the United States Federal Reserve (Fed) to cut the policy rate by 25bp(0.25%points) this week.

On the 9th (local time), foreign media reported that Goldman Sachs' chief financial officer (CFO) Denis Coleman said he expected the Fed to cut rates by 25bp at the monetary policy decision scheduled for Wednesday (local time).

CFO Coleman forecast that regarding the 2026 rate path, after a rate pause at the start of the year there would be two additional cuts. This is interpreted to mean that the Fed would maintain a wait-and-see stance in early next year to secure policy space, and thereafter could undertake additional easing depending on economic and inflation conditions.

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JH Kim

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