Goldman Sachs CEO: Fed Won't Make Emergency Rate Cut As US Economy Remains Strong
CryptoNewsTerminal Staff06 Aug, 2024
Goldman Sachs CEO: Fed Won't Make Emergency Rate Cut As US Economy Remains Strong
Fed Chair Jerome Powell has repeatedly stated that the central bank is committed to bringing inflation down to its 2% target. In a recent speech, Powell said that the Fed will "use our tools forcefully" to achieve this goal. Goldman Sachs CEO David M. Solomon said that the US Federal Reserve (Fed) is unlikely to make an emergency rate cut as the central bank does not currently believe the US economy is in a recession. "The U.S. economy is on solid footing, and the odds of a severe recession are low. Based on economic data and the Fed's message so far, there may be one or two rate cuts this fall," he added. The Fed has raised interest rates four times this year in an effort to cool inflation. The central bank is expected to raise rates again at its next meeting in September. However, Solomon believes that the Fed will not make an emergency rate cut unless the economy takes a sharp turn for the worse. "The Fed is not going to make an emergency rate cut unless there is a significant deterioration in the economy," Solomon said. "The economy is still growing, and the labor market is still strong. The Fed is going to be patient and see how the economy evolves."
