Goldman Sachs: Maintains Forecast of Two Fed Rate Cuts This Year, Next Expected in June

Inflation Data Clears Way for Rate Cut Path

Lindsay Rosner, Head of Multi-Sector Fixed Income at Goldman Sachs Asset Management, recently stated that the January CPI data did not show the feared rebound in inflation, making the Federal Reserve's rate cut trajectory clearer.

She noted that while inflation has eased, the Fed remains highly sensitive to labor market developments, which will play a crucial role in future policy decisions.

Outlook Maintains Two Rate Cuts

Despite ongoing economic uncertainties, Goldman Sachs continues to project two Fed rate cuts this year, with the next expected in June.

• January CPI eases inflation concerns
• Job market remains a key indicator for policy direction
• Goldman maintains two-cut forecast, eyeing June for next move

This outlook is based on current economic data and Fed communications, with the potential to adjust if future data diverges significantly.