Goldman Sachs Group Inc. economists have pushed back their view on when the Federal Reserve will begin cutting interest rates to June after parsing recent comments from the central bank and minutes of its January meeting.
The US investment bank has dropped its forecast for a May cut and now expects four reductions this year, versus five previously, with moves in June, July, September and December. It now sees four more cuts next year, versus a prior three, leaving the same terminal rate of 3.25%-3.5%, economists including Jan Hatzius wrote in a note dated Feb. 22.
Three top Fed officials hammered home the message Thursday that the US central bank is still on track to cut interest rates this year — just not anytime soon. As recently as mid-January, investors and some economists were betting on the Fed to start lowering rates at its March 19-20 meeting.
Hatzius and the Goldman economists note two changes in the Fed’s thinking.
With strong economic data, officials have become less worried about keeping rates too high for too long and see the largest risks from past rate hikes having passed, meaning “cuts are therefore not urgently needed.”
Secondly, Fed officials want more definitive evidence that inflation will approach 2% before cutting, “in part because some worry that the stronger performance of the economy could inhibit further progress in reducing inflation,” the economists wrote in the note.
The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.
The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.
David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.
Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."
Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
