Goldman Predicts Fed Rate Cuts in June, December

Traders and economists, including those from Goldman Sachs, expect the Federal Reserve to maintain interest rates until June, with anticipated 25 basis point cuts in both June and December, contingent on inflation trends. The Federal Reserve's latest policy statement adopted a more hawkish tone, omitting previous progress on inflation targets. Despite current steady rates, Goldman Sachs CEO David Solomon foresees a narrow range for interest rates in 2025 unless significant inflation changes occur, particularly due to rising costs in services and food. The economic outlook suggests a potential boost in capital markets activity and private equity deals in 2025. The Fed's cautious stance reflects concerns about inflation in durable goods and broader economic impacts, as noted by both Solomon and Fed Chair Jerome Powell.