Interest Rates

Goldman Sachs projects US Fed rate cut will come June 2024

Wall Street giant predicts rates will be gradually lowered to 3 per cent from Q2 next year

Fed policymakers in March 2022 began ramping up their target for the benchmark rate to a range of 5.25 per cent to 5.5 per cent. Picture: Getty

Goldman Sachs economists anticipate the US Federal Reserve will start lowering interest rates by the end of next June, with a gradual, quarterly pace of reductions from that point.

“The cuts in our forecast are driven by this desire to normalize the funds rate from a restrictive level once inflation is closer to target,” Goldman economists including Jan Hatzius and David Mericle wrote in a note dated Sunday.

For now, the Goldman team is pencilling ...