Goldman Sachs raises the possibility of Fed rate cuts at the September meeting



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DirectAnalysts Goldman Sachs believe that the Federal Reserve is more likely to reduce interest rates next month after Donald Trump's decision to introduce new rates.

The US president plans to apply a 10% tariff on imports from China, worth $ 300 billion from September.

Analysts at the US bank announced Friday a probability of reducing rates by 25 basis points over 70%, against 10% over 50 basis points, according to Bloomberg.

The report adds that there is now a 20% chance of not changing interest rates at the Fed meeting in September.

This week, the Fed has decided to reduce its interest rates by 25 basis points for the first time since the global financial crisis.

The CEMI index, which tracks the evolution of the Fed's futures contracts yesterday, showed that Fed interest rate cuts at the September meeting would increase to 72.7 percent. %.

Goldman Sachs' previous predictions were to reduce interest rates by a quarter point to 55%.

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