Goldman Sachs Now Sees Three Fed Rate Cuts This Year Instead Of Four

(Bloomberg) -- Goldman Sachs Group Inc. economists changed their forecast for Federal Reserve monetary policy to call for three quarter-point interest-rate cuts this year instead of four.

The change, which brings the forecast in line with the median forecast Fed policy makers made in December, is “mainly because of the slightly higher inflation path,” Goldman economists led by Jan Hatzius said in a March 17 note.

They continue to expect the first rate cut in June, four cuts in 2025 and a final one in 2026, leaving their forecast for terminal rate unchanged at 3.25%-3.5%.

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