Goldman Sachs: Still Expects Two Fed Rate Cuts, Timing Uncertain

Odaily News Lindsay Rosner, Head of Multi-Asset Fixed Income Investing at Goldman Sachs, stated: "Signs of weakness in the labor market remind the Fed that delaying rate cuts could come at a cost, although near-term policy remains influenced by the ongoing conflict in the Middle East. Developments in Iran and their potential inflationary consequences have somewhat overshadowed the U.S. employment situation, making the path to potential policy normalization less clear. We expect the Fed to ultimately complete the remaining two 'normalization cuts' to bring interest rates back to neutral, but given the current uncertainty, the specific timing remains difficult to predict." (Jin10)