BlockBeats reports that on August 18, Goldman Sachs expects the Federal Reserve to cut rates three times this year, with cuts anticipated in September, October, and December due to weak U.S. job growth.
Analysts point out that job additions have slowed to about 30,000 per month, well below the approximately 80,000 needed to achieve full employment, and future data revisions may skew negative. They believe the risks come not only from trade and immigration, but that 'compensatory hiring' is fading, and growth in most sectors is close to zero.
Goldman Sachs warns that despite the unemployment rate remaining stable, even a slight slowdown in the labor market is concerning. If the unemployment rate rises more significantly, it could trigger a larger rate cut of 50 basis points.
