Goldman Sachs Exec. Doesn’t Expect Interest Rate Cuts in 2024

Joshua Ramos
Source: ICI Leadership Summit

Speaking at the ICI 2024 Leadership Summit, Goldman Sachs executive John Waldron stated he did not expect the Federal Reserve to cut interest rates in 2024. Indeed, the investment bank’s President and COO discussed his perspective on the ongoing inflation concerns in the United States.

During the conversation, Waldron did note that the firm’s chief economist “forecast that there are two more rate cuts ahead.” However, he questioned the speed of the Central Bank, and called on the Federal Reserve to finally “slay the inflation dragon.”

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Goldman Sachs President Doesn’t Forsee Interest Rate Cuts This Year

Over the last several years, the US has been engrossed in an ongoing fight against rising inflation. To combat this, the Federal Reserve committed to a tightening campaign that began with initial interest rate increases in March 2022 and continued for 11 consecutive hikes.

Now, the market is carefully observing when the Fed could take the opposite approach, and cut interest rates. However, with the central bank opting for a wait-and-see approach, inflation has not fallen below its ongoing target. Subsequently, there is increasing concern as to when these cuts could take place.

Source: Brookings Institute

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According to Goldman Sachs President and COO John Waldron, the Federal Reserve will not cut interest rates in 2024. Indeed, speaking at the aforementioned ICI Leadership event, he expressed his concern over the Fed’s haste in taking action.

However, Waldron did note that Goldman Sachs’ economists have forecast two rate cuts ahead. The question now is in regard to how the economy will handle the delayed action in cutting rates. Many have perceived a cooling labor market as facilitating a hard landing for the US economy. Alternately, there is optimism among opposing experts who have placed their faith in the resilience of the current economic state of America.