Economics
Goldman Sachs Predicts Fed Will Cut Rates by Half Point in March
- Goldman sees Fed cutting 100 basis points in first half
- Economists predict ECB, BOE, Bank of Canada will also cut
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Goldman Sachs Group Inc. economists said they now expect the Federal Reserve to cut its key interest rate by 50 basis points this month and flagged the possibility of a coordinated move with other central banks.
Revising their Fed forecast for a second time in three days amid mounting risks from the coronavirus to the U.S. economy, the Goldman economists predicted the Fed to act at or before its March 17-18 meeting. On Friday they forecast a 25 basis point reduction at that gathering, but now think the Fed may not wait until then to ease monetary policy.