Goldman Sachs: U.S. Growth Shock Means Fed Will Be in ‘Somewhat of a Rate Cut Mode’

Goldman Sachs Asset Management's chief investment officer of public investment, Ashish Shashi, said the United States is currently facing a ‘growth shock’ means that the Federal Reserve ‘will be in some kind of rate-cutting mode this year, more than six weeks ago or two months ago,’ the expectations. Shash said, ‘What we're seeing in the bond market is reasonable pricing for the Fed to open the window, or the market suggests the Fed may actually have to ease policy further.’ He added that recent economic data confirms this view, but ‘the level of additional tariffs ...... we've seen in the last 24 hours further raises this expectation.’ Market pricing on Thursday showed investors expect three to four rate cuts in 2025, up from about three the day before.