Goldman Sachs now expects exactly 3 rate cuts from the #FED.
Yes, not just one, but three separate cuts in September, October, and December. 🤟
In their previous forecasts, they were only expecting a single cut in December.
- So why has there been such a revision?
Because the impact of the recently discussed import tariffs on inflation seems like it won't be as severe as initially thought.
This also eases the FED's position.
In other words: "If prices aren't going to skyrocket, we can cut rates earlier and more aggressively."
Additionally, I mentioned earlier. The market entered expectations early with the thought that a cut would come once Powell leaves.
This is a significant signal for the market because now it's not just an isolated cut, but a gradual rate-cutting cycle is on the agenda.