"A key reason our baseline forecast remains slightly dovish than market pricing is that we view the impact of potential policy changes on interest rates under a possible second Trump presidency as being more twosided, " Goldman economists wrote.
Nick Timiraos, known as the "New Fed News Agency," published an article in which he said that one of the Fed's options this week is to cut interest rates by 25 basis points and then use new economic forecasts to strongly suggest that the central bank is ready to slow the pace of rate cuts.
The article points out that in the face of different internal voices, Powell must strike a balance in policy adjustments.
Regarding continuing to cut interest rates, Timiraso said there are pakistan phone number list differences within the Federal Reserve.
On the one hand, some hawkish officials are worried that cutting interest rates too early will keep inflation high and damage the Fed's credibility. In addition, some of Trump's policies after taking office may push up inflation.
On the other hand, dovish officials are concerned about slowing economic growth and believe that it is necessary to cut interest rates to stimulate the economy. They believe that the Federal Reserve has raised interest rates significantly in the past two years and now needs to carefully assess the risks of lowering interest rates.
Timiraso pointed out that currently, the U. labor market is performing delicately, with both hiring and layoff rates at low levels. Economic growth was relatively stable, but unemployment rose. Interest rate sensitive sectors, such as housing, have yet to fully benefit from rate cuts.