PANews reported on April 7 that Goldman Sachs adjusted its expectations for the Federal Reserve's rate cuts, believing that if a recession hits, the risk of the Fed easing policy further is higher. Goldman Sachs now expects the Fed to begin a series of rate cuts in June - earlier than the previous forecast of July - as part of a precautionary easing cycle. In the base case assuming that the United States avoids a recession, the Fed will cut interest rates by 25 basis points three times in a row, bringing the federal funds rate to a range of 3.5%-3.75%. However, Goldman Sachs expects that if the economy does fall into a recession, the Fed will adopt a more aggressive policy response, cutting interest rates by about 200 basis points next year. Given the increased probability of a recession, the agency's current weighted forecast shows a total of 130 basis points in rate cuts in 2025, up from 105 basis points previously. As of the close of last Friday, this outlook was roughly in line with current market expectations.
Goldman Sachs: If the economy really falls into recession, the Fed may cut interest rates by 200BP next year
- 2025-05-13
Video | Weekly market analysis: New breakthroughs in Sino-US trade, impact on the New Taiwan dollar and shift in South Korea's ETF policy, where will global funds flow?
- 2025-05-13
SEC Chairman's latest statement on crypto asset regulation: Commitment to end "enforcement regulation" and consolidate the United States' Crypto leadership
- 2025-05-13
Chang'an is no longer: When the on-chain protocol becomes the new Xianyang
- 2025-05-13
New York Mayor Eric Adams: Make New York the "Global Cryptocurrency Capital" of the World
- 2025-05-12
The U.S. Treasury Department will hold a closed-door roundtable on stablecoins on May 15
- 2025-05-12
David Bailey and his company Nakamoto raise $710 million and merge with KindlyMD to build a Bitcoin vault