Economists at Goldman Sachs say their baseline forecast calls for the Federal Reserve to start cutting the fed-funds rate in the second quarter of 2024. The economists say they are penciling in 25 basis points of cuts per quarter but are uncertain about the pace. “The FOMC might move slowly if its desire to normalize is only lukewarm and it fears further boosting asset prices and strengthening an economy with an already-tight labor market, or it could cut more quickly from a high starting point if it is more confident that the inflation problem is unlikely to return,” the economists write in a note. They believe the funds…
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