If you didn’t get the memo its ‘higher for longer’ for the Federal Reserve:
Justin posted on the Goldman Sachs rate cut expectation revision here:
Goldman Sachs were previously forecasting the first FOMC cut in Q2 of 2024.
Adding in a little more now from GS analysts:
- participants appeared to move away from the view that monetary policy tightening could weigh on growth with a long lag next year, which weakens one argument for cutting
- “We think this means that inflation will have to fall further than we previously assumed for the FOMC to cut.