Goldman Sachs: The Federal Reserve's rate cut in December is a foregone conclusion, with consecutive cuts of 25 basis points expected in January and March next year

ChainCatcher news, according to Jinshi reports, Goldman Sachs believes that the Federal Reserve's interest rate cut in December is a foregone conclusion, followed by consecutive cuts of 25 basis points in January and March of 2025; subsequently, there will only be rate cuts in the June and September meetings. However, there are still some variables, as more and more Federal Reserve officials indicate that the FOMC may slow down the pace of rate cuts sooner, so there is a risk of pausing rate cuts in the January meeting.

Traders now believe that the likelihood of the Federal Reserve cutting rates by 25 basis points at the meeting on December 17-18 is as high as 97%. However, due to stronger data in November, the risk of the Federal Reserve pausing rate cuts in early 2025 has increased. Powell's post-meeting speech and the latest economic forecasts will be crucial.