Goldman Sachs outlines its projections for the monetary policy paths of both the Federal Reserve and the European Central Bank (ECB) over the coming years. The firm expects the Fed to initiate a series of rate cuts starting in June 2024, eventually reaching a terminal rate range of 3.25-3.5%. In contrast, the ECB is forecasted to begin cutting rates in June 2024, with a series of reductions leading to a policy rate of 2.25%.Key Points:Federal Reserve Outlook:Holding Pattern: Anticipated to maintain the current fed funds rate range (5.25-5.5%) until June.Rate Cuts: Projected to cut rates by 25 basis points in June, September, and December 2024, followed by four additional cuts in 2025, and on
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