Goldman Sachs expects Fed to resume rate cuts in second quarter of 2024

Goldman Sachs said it expected the U.S. Federal Reserve to start cutting interest rates in the second quarter of calendar year 2024 but warned of a significant risk that rates could hold steady if inflation doesn't cool fast enough.

Economists at the brokerage led by Jan Hatzius said in a note on Sunday that the Fed would start cutting rates at 25 basis points per quarter and stabilize at 3% to 3.25%.