Goldman Sachs: Still Expecting the Federal Reserve to Cut Rates Twice, Timing Uncertain

Goldman Sachs multi-asset fixed income investment chief Lindsay Rosner stated: “Signs of a softening labor market serve as a reminder to the Federal Reserve that delaying interest rate cuts could come at a cost, even though short-term policy remains influenced by the ongoing Middle East conflict. Developments in Iran and their potential impact on inflation have somewhat overshadowed the U.S. employment situation, making the path toward potential policy normalization less clear. We expect the Federal Reserve will ultimately complete the remaining two ‘normalization rate cuts’ to bring interest rates back to neutral, but given the current uncertainties, the timing remains uncertain.”