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.

Published on: May 23, 2024, 08:29:53 IST

By HT News Desk | Edited by Mallika Soni

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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.

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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.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More