US economic growth slows slightly and will have a "soft landing"

Recently, economists at Goldman Sachs predicted that the US Federal Reserve (Fed) could begin lowering interest rates in March and implement a total of five interest rate cuts in 2024.

Headquarters of the US Federal Reserve (Fed) in Washington. (Source: Xinhua)

Goldman Sachs experts believe that the US economy will experience a "soft landing," with growth slowing slightly and inflation continuing its downward trend this year.

According to the investment bank, the Fed will gradually reduce interest rates, thereby lowering borrowing costs for consumers and businesses.

With inflation falling and the economy still stable, the Fed kept interest rates at a 22-year high in December 2023, reinforcing the view that the most recent rate hike in July last year was the last in the bank's tightening cycle.

While still leaving open the possibility of further interest rate hikes if inflation rises again, Fed policymakers anticipate three rate cuts this year.

Goldman economist Jan Hatzius said the Fed will soon cut interest rates, most likely next March.

According to this expert, Goldman Sachs predicts the Fed will only cut interest rates five times this year, lower than market expectations. Furthermore, the likelihood of rate cuts of 0.5 percentage points is very low.

The Fed's interest rate is currently at 5.25-5.5%. Five rate cuts, each reducing the rate by 0.25 percentage points as predicted, would bring it down to 4-4.25%.

Source: https://baoquocte.vn/goldman-sachs-tang-truong-kinh-te-my-giam-toc-nhe-va-se-ha-canh-mem-257679.html