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

According to Jinshi News, 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; subsequently, there will only be rate cuts at the June and September meetings. However, there are still some variables as more and more Fed officials indicate 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 January meeting.

Traders now believe that there is a high probability (97%) for the Fed to cut 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 in early 2025. Powell's post-meeting speech and latest economic forecasts will be crucial.