Goldman Sachs: Firmly believe that the Federal Reserve will still cut interest rates twice this year, and will cut four times in the first half of next year

Goldman Sachs Chief Economist Jan Hatzius still believes that the Federal Reserve will fulfill its previous hint of implementing two rate cuts before the end of the year, especially after a weaker-than-expected employment report was released last week. He predicts that this situation will continue into the first half of 2025. In a report published last Sunday, Hatzius stated, "We expect the Fed to cut rates four times in succession in the first half of 2025, with final interest rates falling to between 3.25% and 3.5%. However, we have greater uncertainty about both the speed at which the Fed will cut rates next year and its ultimate target," he added that his forecast is approximately 50 basis points higher than market consensus.