The US Federal Reserve is set to make its first rate cut by March 2024, according to widely covered reports of the Wall Street icon's latest projections.
In the Middle East, Zawya noted: "In its latest briefing, the investment banking firm said its economists now forecast the Federal Open Market Committee (FOMC) will impose three consecutive 25-basis-point reductions in March, May and June. These are to be followed by quarterly cuts until the benchmark overnight borrowing rates reach a targeted range between 3.25% and 3.5%, which is 25 basis points lower than previously forecast."
Business Insider notes that Goldman Sach's full outlook actuall includees 5 rate cut; the three mentioned plus two more later in the year. It cites the shift to a "Great Disinflation" outlined by the investment bank's chief economist. This will also allow other central banks to start cutting rates, it added.
And Yahoo! Finance notes that the investment bank has also hiked its forecast for the S&P 500 to hit 5000 in the coming year.
The outlook comes following last week's FOMC meeting, which suggested inflation is continuing to fall.
Markets Insider cited another Goldman Sachs voice stating: "Decelerating inflation and Fed easing will keep real yields low and support a price-to-earnings multiple greater than 19x."
In response, currency markets are pushing down forecast dollar rates relative to other hard currencies, as expectations grow for lower US interest rates versus those of other central banks.
