Goldman Sachs Predicts Fed’s Interest Rate Cut in Q3 2024
Goldman Sachs forecasts that the U.S. Federal Reserve (Fed) may reduce interest rates by the third quarter (Q3) of 2024, based on upcoming inflation and job market data. This signals a potential shift from the Fed’s recent cautious stance on rate hikes.
Fed’s Rate Reduction Timeline
Goldman Sachs has revised its prediction, suggesting that the Fed may begin interest rate cuts in Q3 of 2024, marking a potential double reduction from 2019. Strong job reports indicate a resilient U.S. labor market and a softening inflationary trend based on recent Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI) data.
Bitcoin and Cryptocurrency Market Implications
The potential easing of Fed policies, as inflation rates cool down, has raised expectations for an announcement by Fed Chair Jerome Powell. Any delay in rate cuts might impact Bitcoin prices, especially in light of the anticipated April halving. The market currently watches Bitcoin trade at $42,160, with fluctuations between $40,521 and $44,034.
Investors and traders closely monitor the Fed’s decisions, which will significantly influence financial markets in the following weeks. The dynamic relationship between interest rate policies, inflation, and the labor market remains a critical focus for global market participants.
Hot Take
Goldman Predicts Fed Interest Rate Cut to Impact Cryptocurrency Market
By
By
By
By
By