Posted 4/10/2024, 7:25:37 PM
Goldman Sachs Struggles to Forecast Fed Rate Cuts Amid Unpredictable Inflation Data
- Goldman Sachs has revised its Fed rate cut predictions multiple times recently as inflation data kept changing
- They predicted 5 cuts starting in March 2023, then trimmed to 2 cuts in July and November after seeing re-acceleration in inflation
- The revisions track the broader struggle to predict the Fed's path amid the first big inflation wave in decades
- Traders have also kept recalibrating bets on the Fed's policy as new economic data rolls in
- Goldman's chief economist Jan Hatzius acknowledges being "whipsawed" by the unpredictable inflation changes
