Goldman Sachs Predicts Interest Rate Cuts by Federal Reserve
Goldman Sachs economists, including Jan Hatzius and David Mericle, have predicted that the Federal Reserve may begin a series of interest rate cuts by the end of June 2024. The bank believes that the current interest rate stance may be too restrictive and aims to normalize the funds rate once inflation is closer to target.
Main Points:
- Goldman Sachs predicts interest rate cuts by the Federal Reserve
- The bank aims to normalize the funds rate once inflation is closer to target
- There is a significant risk that the Federal Reserve will hold steady instead of cutting rates
- The recent data shows slower-than-expected US inflation
- Goldman Sachs expects the Fed’s benchmark rate to stabilize around 3 to 3.25%
What Does This Mean For Bitcoin Price?
According to market expectations, a rate cut from Goldman Sachs aligns with the CME FedWatch Tool. However, it remains to be seen if macro events will impact the Bitcoin price. BTC has recently decoupled from macro events while the stock market has rallied. The timing of the rate cut and upcoming Bitcoin events, such as spot Bitcoin ETF filings and the Bitcoin halving, could be a significant catalyst for the Bitcoin price.
Hot Take:
The prediction of interest rate cuts by Goldman Sachs and the dovish monetary policy from the Federal Reserve could have a positive impact on the Bitcoin price. However, breaking above the $29,550 mark is crucial for establishing bullish momentum and pushing towards $30,000.
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