Updated February 23rd, 2024 at 09:35 IST

Goldman Sachs withdraws expectation of US interest rate cut in May

Waller stressed upon the need to assess more inflation data over the coming months before considering adjustments to ensure economic stability.

Reported by: Business Desk
Goldman Sachs | Image:Goldman Sachs
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Goldman Sachs on Fed rate cut: Investment banking company Goldman Sachs’ analysts have revised their expectations regarding a potential US interest rate cut in May, citing Federal Reserve Governor Christopher Waller's recent comments. 

Waller stressed upon the need to assess more inflation data over the coming months before considering adjustments to ensure economic stability.

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The analysts, noting the limited time frame until the May Federal Reserve (Fed) meeting and the necessity for additional inflation data, now believe that their previous anticipation of a rate cut in May is improbable. 

Meanwhile, they have adjusted their forecast to include four 25 basis point cuts throughout the year, postponing any potential rate adjustments to the following year. 

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Despite these changes, Goldman Sachs maintains its forecast for an unchanged terminal rate ranging between 3.25 per cent and 3.5 per cent.

(With Reuters Inputs)

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Published February 23rd, 2024 at 09:35 IST