Goldman Sachs CEO David Solomon has dismissed the likelihood of a 50 basis point interest rate cut by the US Federal Reserve in September, countering a recent forecast by Standard Chartered Bank. Speaking to CNBC, Solomon expressed confidence in a smaller 25 basis point cut, aligning with the broader market consensus where 92.2% of participants expect this outcome. The CME FedWatch Tool indicates only a 7.8% probability of a 50 basis point cut.
Solomon noted a softening in the labor market and suggested the possibility of one or two additional rate cuts this year, contingent on economic conditions. The upcoming Fed meeting is pivotal for both traditional and crypto markets, as lower rates could make riskier assets more attractive. However, sentiment analysis platform Santiment cautioned that heightened social media discussions about the rate decision might signal a local top for crypto markets.
Goldman Sachs CEO Dismisses 50 Basis Point Fed Rate Cut in September
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