Goldman Sachs Chief U.S. Economist David Mericle writes that this week’s FOMC decision is “likely to be uneventful”, with no change in fed funds rate and only minor changes to the policy statement language. Fed Chair Powell is expected to emphasize that the FOMC has just delivered three cuts that should help to stabilize the labor market and is well positioned for now while it assesses their impact, Mericle tells investors in a research note. If the labor market does stabilize this year, as Goldman expects, further rate cuts would be less urgent, though the firm has penciled in the next rate cut to come in June, followed by a final easing in September, bringing this year’s bottom in Fed Funds target to 3.00%-3.25%, the firm added.
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