Goldman Sachs Exec. Doesn't Expect Interest Rate Cuts in 2024

Speaking at the ICI 2024 Leadership Summit, Goldman Sachs executive John Waldron stated he did not expect the Federal Reserve to cut interest rates in 2024. Indeed, the investment bank’s President and COO discussed his perspective on the ongoing inflation concerns in the United States.

During the conversation, Waldron did note that the firm’s chief economist “forecast that there are two more rate cuts ahead.” However, he questioned the speed of the Central Bank, and called on the Federal Reserve to finally “slay the inflation dragon.”

Also Read: Grayscale Hires Goldman Sachs’ Peter Mintzberg as New CEO

Goldman Sachs President Doesn’t Forsee Interest Rate Cuts This Year

Over the last several years, the US has been engrossed in an ongoing fight against rising inflation. To combat this, the Federal Reserve committed to a tightening campaign that began with initial interest rate increases in March 2022 and continued for 11 consecutive hikes.

Now, the market is carefully observing when the Fed could take the opposite approach, and cut interest rates. However, with the central bank opting for a wait-and-see approach, inflation has not fallen below its ongoing target. Subsequently, there is increasing concern as to when these cuts could take place.

Source: Brookings Institute

Also Read: BRICS: Goldman Sachs Makes Major Gold Price Prediction

According to Goldman Sachs President and COO John Waldron, the Federal Reserve will not cut interest rates in 2024. Indeed, speaking at the aforementioned ICI Leadership event, he expressed his concern over the Fed’s haste in taking action.

However, Waldron did note that Goldman Sachs’ economists have forecast two rate cuts ahead. The question now is in regard to how the economy will handle the delayed action in cutting rates. Many have perceived a cooling labor market as facilitating a hard landing for the US economy. Alternately, there is optimism among opposing experts who have placed their faith in the resilience of the current economic state of America.

  • US Economy

Comments

Post a Comment

Popular posts from this blog

Market Ignores CPI Inflation Data as Scorching Crypto Rally Continues and Money Pours Into Presales

Image
Crypto currencies boomed in recent weeks, especially $ BTC which soared above $50,000 for the first time in 2 years, despite the release of a recent C.P.I.  (Consumer Price Index) that came in higher than expected, signaling a possible delay in rate cuts. This is a testament to the strength of the current bull market as investments pour into presale tokens, especially $GFOX , which is one of the most innovative tokens in the market. Bitcoin Surges Despite Dollar Strength as Investor Interest in Galaxy Fox Presale Hits New Highs On February 13, the U.S. Bureau of Labor Statistics released the Consumer Price Index (CPI) for January 2024, showing the rate at which prices rose in the country for that month. The CPI showed that prices rose by 3.1%, slightly lower than the rate as of December 2023 which was 3.4%. Despite January’s C.P.I. dropping slightly compared to December, according to experts, the rate was somewhat higher than the expected 2.9%.  In response to
Read more

How one Web3 company is creating the ultimate crypto ecosystem

Image
Fastex, an up-and-coming crypto project, aims to reshape the Web3 space with one of the most developed ecosystems out there. As the Web3 space continues to grow and evolve, there are now several defined aspects that users tend to affiliate it with. Whether one likes to use crypto for payments or is interested in hunting down the latest NFT collectible, the crypto space is rapidly diversifying what it can offer users. Regardless of the sub-sector, Web3 continues to onboard new users. According to the latest DappRadar industry report, the number of unique active wallets that connected to a blockchain-based application on a daily basis rose significantly in 2022. While in 2021, the Blockchain industry saw an average daily wallet count of about 1.58 million, in 2022, this number skyrocketed to 2.37 million. Still, despite rising activity, one big challenge remains — the Web3 space is fragmented, and the various services the space has to offer require a multitude of tools and interactions
Read more