Will US fed cut rates in 2024? Goldman Sachs' CEO's ‘zero chances’ response

David Solomon predicted “zero” cuts citing investments in AI infrastructure that have helped economy be more resilient to the Fed’s monetary tightening.

Goldman Sachs' CEO Officer David Solomon said that he currently expects the US Federal Reserve to not cut interest rates this year as the country's economy has proved to be more resilient. This is due to government spending, he said, adding, “I still don’t see the data that’s compelling to say we’re going to cut rates here.

Goldman Sachs CEO David Solomon gestures during the Boston College Chief Executives Club luncheon in Boston, Massachusetts, US. (Reuters)

David Solomon predicted “zero” cuts citing investments in AI infrastructure that have also helped the economy be more resilient to the Fed’s monetary tightening.

He also said the risk of some kind of slowdown that’s “real and palpable” is bigger than it was six months ago as he said geopolitical fragility continues. It is something that people are going to have to live with for a long time, he warned.