Goldman Sachs: Still Expects Fed to Cut Rates in December, January, and March

BlockBeats News, November 18th: Federal Reserve Chairman Powell's speech last week hinted at a possible pause in rate cuts at the upcoming meeting. This news has disappointed investors. However, some economists do not believe that Powell's comments will have a negative impact on the market. Andrew Hollenhorst, Chief U.S. Economist at Citi, said, "U.S. bond yields rose due to Powell's comments, but we believe this is more a reflection of Powell keeping all options open rather than intentionally signaling a hawkish stance."

Goldman Sachs Chief Economist Hatzius still expects "the Fed to cut rates in December, January, and March consecutively, followed by a rate cut every quarter in June and September, but he believes the FOMC may slow the pace of rate cuts sooner, possibly as early as the December or January meeting." However, the likelihood of the FOMC skipping a rate cut in December is slim unless the November employment or inflation reports unexpectedly show strength. (FXStreet)