Goldman Sachs Predicts Fed Rate Cuts in Q2 2024

Goldman Sachs predicts that the Federal Reserve will likely cut interest rates in the second quarter of 2024, driven by the desire to normalize the funds rate once inflation is closer to target, rather than by a recession. With economists seeing less likelihood of a recession and inflation heading in the right direction, rate cuts are expected. Bank of America and Wells Fargo also project rate cuts in the same time frame. The Fed's most recent projections show rate cuts in 2024, indicating a belief that inflation is coming down.