Goldman Sachs: The Fed's hawkish camp has been appeased, future easing depends on the labor market

According to Jin Ten, Goldman Sachs analyst Kay Haigh stated that the Federal Reserve has reached the end of "preventive rate cuts." She believes that the labor market data must weaken further in order to justify additional recent easing measures. The "hard dissent" from voting members and the "soft dissent" appearing in the "dot plot" highlight the hawkish camp within the Federal Reserve, and the reintroduction of language regarding the "magnitude and timing" of future policy decisions in the statement is likely aimed at soothing them. While this leaves the possibility for future rate cuts, the weakness in the labor market must reach a higher threshold.