According to Odaily, Goldman Sachs' Chief Economist Jan Hatzius maintains confidence that the Federal Reserve will follow through on its earlier indications of implementing two interest rate cuts by the end of the year. This expectation is particularly reinforced by a weaker-than-expected employment report released last week. Hatzius anticipates that this trend will continue into the first half of 2025.
In a report published last Sunday, Hatzius stated, "We expect the Federal Reserve to execute four consecutive rate cuts in the first half of 2025, ultimately bringing the interest rate down to a range of 3.25% to 3.5%. However, there is greater uncertainty regarding the pace and final target of the Fed's rate cuts next year." He further noted that his forecast is approximately 50 basis points higher than the market consensus.