Goldman Sachs: The Fed is unlikely to cut interest rates because of weak "soft data"

Odaily News Surveys of U.S. consumers and businesses show an anxious economic mood, but underlying data do not yet point to a severe slowdown. The Fed is unlikely to ease policy based on "soft data" alone, Goldman Sachs economists wrote, especially because soft data has wrongly signaled an impending recession in the recent past, such as during the Fed's fight against inflation in 2022.
The Goldman Sachs team wrote that the Fed "would also like to see evidence from the labor market and other hard data before cutting rates." The investment bank, like other Wall Street institutions, believes that the Fed will keep interest rates unchanged in its interest rate decision on Wednesday. (Jinshi)