Goldman Sachs: Fed Leadership Change Will Not Bring Rapid Rate Cuts

Odaily Planet Daily News In a report to clients, Goldman Sachs economist David Mericle stated that the path for Kevin Warsh to become the Federal Reserve Chair is now clear, but the change in leadership may not immediately alter the Fed's policy stance in the coming months. He noted: "When the Federal Open Market Committee is divided, a new chair may not be able to push for rate cuts as forcefully as Powell." Furthermore, regardless of Warsh's influence, a new chair's enthusiasm for cutting rates may not be much greater than Powell's, especially given the still-high uncertainty surrounding the Middle East war. However, Goldman Sachs still expects easing policies to be implemented 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)