Goldman Sachs expects September Fed rate cut, up to 50bp if jobs mkt slips further

Goldman Sachs expects the Federal Reserve to begin cutting rates in September, projecting three straight 25 basis point reductions.

However, the bank says a larger 50bp cut is possible if the next jobs report shows a further rise in unemployment.

Earlier:

Daly swinging a little more dovish:

• Fed's Daly says two FOMC rate cuts in 2025 seem appropriate

But, don't abandon a viewpoint that carefully assesses what was said:

• Fed's Daly comments - be careful of the narratives pundits are choosing

Also, Williams spoke, as I posted on the weekend, and I'm not seeing a lot on this:

• Fed's Williams say's he'll have "very much an open mind" on September meeting rate cut
• Weekend Fed Williams - "very much an open mind" on September rate cut. I have comments!

Not everyone agrees on a September rate cut:

• BoA stick with Fed rate hold call despite market pricing in September cut on weak job data

BoA's call is looking more and more 'brave'.