Home > Dynamic > Goldman Sachs predic...

Goldman Sachs predicts that the Federal Reserve will cut interest rates four times this year, Europe and the United Kingdom are expected to follow the United States, and Japan may raise inter

2024-01-24

489

Bloomberg News reported on the 22nd that the U.S. Federal Reserve may cut interest rates four times this year; the U.S. inflation rate will fall back to the Fed’s established target of 2 %Target.

Shiffrin correctly predicted a "soft landing" for the U.S. economy last year. Among his top ten predictions for 2024, he mentioned that the Federal Reserve will cut interest rates for the first time in March this year, a total of 4 times, and Europe and the United Kingdom will follow U.S. policies; on the contrary, Japan may raise interest rates in April.

Kyodo News reported that the Bank of Japan maintained its ultra-low interest rate policy on the 23rd.

The Federal Reserve will start an interest rate hike cycle in March 2022, and will continue to implement a series of interest rate hikes and balance sheet reduction actions in 2023 to promote a decline in inflation. So far, the Federal Reserve has raised interest rates 11 times, with a cumulative increase of 525 basis points. The current target range for the U.S. federal funds rate remains between 5.25% and 5.5%.

Shiffrin said that the U.S. stock market will be difficult to operate in the first half of this year because investors need to adjust their predictions about the timing and pace of the Federal Reserve's interest rate cuts at any time. He recommends buying emerging market stocks.

Shiffrin also predicted that although geopolitical tensions disrupt Red Sea shipping, the trend of easing price pressure in the United States is unlikely to be hindered. Once the Fed's 2% inflation target is achieved, its inflation target range will be adjusted to between 1.5% and 2.5% next year.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

CM Trade

As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.

[Products]

The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.

[System]

2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate

[Service]

Comprehensive market news, professional market analysis, 7*24 hours online customer service

[Advantage]

Low cost, high leverage, flexible one-stop all day two-way trading.

[Authority]

Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.

Free Access
Daily Trading Strategy Download Now

CM Trade Mobile Application

Economics Calendar

Goldman Sachs predicts that the Federal Reserve will cut interest rates four times this year, Europe and the United Kingdom are expected to follow the United States, and Japan may raise inter

Access to global trading markets anytime and anywhere