Goldman Sachs and Morgan Stanley Clash on Fed Rate-Cut Predictions

Goldman Sachs and Morgan Stanley have divergent forecasts for the Federal Reserve's interest rate cuts. Morgan Stanley economists predict deep rate cuts over the next two years due to cooling inflation, with the central bank starting in June 2024 and making cuts in every meeting from the fourth quarter onward. On the other hand, Goldman Sachs analysts expect fewer reductions and a later start, with the first cut in the fourth quarter of 2024 and subsequent cuts through mid-2026. The forecasts reflect differing views on the strength of the economy and inflationary pressures.