Goldman Sachs: Fed Chair Change Won’t Lead to Rapid Rate Cuts

Odaily reported that Goldman Sachs economist David Merrick said in a note to clients that while a path for Kevin Warsh to become Fed Chair has become clear, a leadership change may not immediately alter the Fed's policy stance in the coming months. He noted: "When the FOMC is divided, a new chair may not be able to drive rate cuts as forcefully as Powell." Moreover, regardless of Warsh's influence, the new chair's enthusiasm for rate cuts may not be much higher than Powell's, especially given the still-high uncertainty surrounding the Middle East war. However, Goldman Sachs still expects policy easing before the end of the year, maintaining its previous forecast that the Fed will cut rates by 25 basis points in September and December respectively. (Jin Shi)