Goldman Sachs: There is no doubt that the Federal Reserve will cut interest rates in December. It will continue to cut 25 basis points consecutively in January and March next year

According to Jinshi reports, Goldman Sachs believes that the Federal Reserve will undoubtedly cut interest rates in December, followed by consecutive cuts of 25 basis points in January and March 2025. Subsequent rate cuts will only occur at meetings in June and September. However, there are still some variables as more and more Fed officials suggest that the FOMC may slow down the pace of rate cuts as early as possible, so there is a risk of pausing rate cuts at the meeting in January.

Traders now believe that there is a high probability (97%) for the Fed to cut interest rates by 25 basis points at its meeting on December 17-18. But due to strong data in November, it increases the risk of the Fed pausing rate cuts at the beginning of 2025. Powell's post-meeting speech and latest economic forecasts will be crucial.