Goldman Sachs economists: The Fed's rate hike this time may be the last of this cycle

ChainCatcher message, in the absence of data that could weaken expectations for a 25 basis point rate hike by the Federal Reserve next week, U.S. Treasury yields fell. Goldman Sachs economist David Mericle stated that this rate hike could be the last one in the hiking cycle.

The likelihood of an economic recession in the U.S. is lower than market expectations, and rate cuts are not expected to begin until the second quarter of 2024, proceeding at a pace of 25 basis points per quarter, with the final rate settling in the range of 3-3.25%, higher than the long-term forecast of 2.5% on the FOMC dot plot. (Source link)