Goldman Sachs Leader Foresees No Rate Cuts from Fed Before September
Goldman Sachs CEO David Solomon predicts the Federal Reserve will hold off on rate cuts until at least September, despite weak job data.
On “The David Rubenstein Show,” Solomon noted that while investors initially expected rate cuts sooner due to global market turmoil and disappointing employment figures, these hopes have faded. Markets, which previously saw a 60% chance of immediate cuts, now anticipate reductions at the September 18 meeting. Solomon acknowledged recent market volatility, influenced by Japan’s rate hikes and carry trade unwinding, and stressed that while the job report was softer than expected, it’s not catastrophic.
He described the market’s rate cut expectations as overly optimistic and updated Goldman’s recession probability to 25% from 15%, suggesting the current market correction could offer short-term benefits.
Clever Robot News Desk 9th August 2024
