Goldman Sachs Predicts Limited Guidance from Federal Reserve Meeting
According to Odaily, Goldman Sachs anticipates that the Federal Reserve will provide limited guidance during its upcoming meeting. The potential changes in fiscal policy following the U.S. elections pose another risk to the Fed's policy trajectory, although this risk may persist for a longer duration. Comments made by Federal Reserve Chair Jerome Powell during the July press conference suggest that the Federal Open Market Committee (FOMC) is hesitant to respond to potential policy changes, as these remain speculative.Even after the election results are announced, the committee may prefer to wait for more definitive policy changes before reassessing its economic outlook and interest rate plans. The Fed's policy statement today is expected to show no significant modifications. However, a rate cut of 25 basis points is anticipated in December, with an additional reduction of 100 basis points in the first half of 2025, bringing rates down to 3.25-3.50%. The pace and endpoint of rate cuts next year remain uncertain.