Analysts at Goldman Sachs predicted when the Federal Reserve would begin decreasing interest rates.
After successfully lowering inflation in the United States, the Federal Reserve is widely anticipated to lower interest rates and continue the campaign against inflation.
While several forecasts have been made regarding when the FED would lower interest rates, the most recent estimate comes from economists at Goldman Sachs.
The experts at Goldman Sachs have said that they anticipate the Fed will cease increasing interest rates in September of next year.
According to a note published by Goldman Sachs on Sunday, authored by analysts Jan Hatzius and David Mericle, the firm anticipates a quarterly rate drop beginning in June 2024.
Experts who believe the FED will not increase interest rates in November say the central bank will instead focus on the movement of core inflation.
The Fed may choose to leave interest rates unchanged rather than reduce them since “normalisation” is not a pressing reason to lower rates.
“We now anticipate rate reductions of 25 basis points on a quarterly basis from the Federal Reserve; however, we cannot be certain of the Fed’s pace of rate reductions.”
Recently, analysts have been forecasting a 3- or 3.25-percent interest rate as a sustainable long-term level.
If the Federal Reserve decides to forego its planned rate rise in September, it would be good for the stock market, the cryptocurrency market, and Bitcoin in general, according to experts at Goldman Sachs.
Bitcoin and other risky assets will continue to be driven by the language used in the Federal Reserve’s interest rate decision.
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