Goldman Sachs Predicts US Federal Reserve Will Lower Interest Rates in Q2 2024
Jan Hatzius and David Mericle, economists at Goldman Sachs, predict that the US Federal Reserve will begin reducing interest rates in the second quarter of 2024. This move could potentially increase investor interest in risk-on assets, including stocks, commodities, and cryptocurrencies. However, there is still uncertainty about the pace of these rate cuts.
Key points from the content include:
– Hatzius and Mericle believe the Federal Reserve will gradually lower interest rates starting in June 2024.
– They anticipate a decline of 25 basis points per quarter as the most likely scenario.
– The cuts are driven by the desire to normalize the funds rate from a restrictive level once inflation is closer to target.
– The economists do not expect the Fed to raise rates during its next FOMC meeting in September.
– Goldman Sachs’ experts predict that the Fed will continue lowering rates until reaching a benchmark of 3-3.25%.
Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, also shares a similar view, predicting that the Fed will begin cutting rates in 2024, possibly as early as Q1.
Overall, it seems that economists and experts are anticipating a pivot towards lower interest rates by the US Federal Reserve in the near future, which could have implications for various asset classes, including cryptocurrencies.
Hot Take: Lower Interest Rates Could Boost Cryptocurrency Market
The prediction of lower interest rates by Goldman Sachs and other experts suggests potential positive effects on the cryptocurrency market. With reduced rates, investors may seek alternative assets like cryptocurrencies that offer higher potential returns. However, it’s important to note that this forecast is not guaranteed, and market conditions can change. Investors should stay informed and consider the potential risks and rewards of investing in cryptocurrencies.
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