MNI BRIEF: Beijing Reveals 2024 Bond Issuance Plan

MNI BRIEF: BOJ Cuts Scale Of 5-10 Year JGB Buying By JPY50 Bln

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1030 Mon; -4.18% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1030 MON VS 7.1011

INDON Sov Curve Steady, Consumer Confidence Rose To 11-Month High

MNI BRIEF: China April CPI Edges Up To 0.3% Y/y

CHINA JAN-APR NEW LOANS CNY10.19 TRLN VS JAN-MAR CNY9.46 TRLN

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GS Raise Their Fed Funds Equilibrium Rate 50bps

US OUTLOOK/OPINION
  • Goldman Sachs have raised their terminal or equilibrium fed funds rate forecast from 3-3.25% to 3.5-3.75%, along with increases for some other economies as well.
  • “We continue to expect that rates cuts will start in 2024Q4 and proceed at a pace of 25bp per quarter, but cuts now end in 2026Q2 under our revised forecast.” As our 2024 Global Macro Outlook explains, we are raising the equilibrium policy rate for some other economies as well.
  • “We think the impact of rate hikes is mostly behind us and see rate cuts next year as optional. We expect the FOMC to conclude that while neutral might not be as low as the 2.5% median longer run dot, it probably is not 5.25-5.5%, so some amount of normalization makes sense as inflation falls.”
  • “We expect the equilibrium rate to be higher than last cycle because the post-financial crisis headwinds are behind us, large fiscal deficits are likely to persist, the funds rate is approaching equilibrium from above, and the r* narrative is changing.”
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange BulletsGoldman Sachs Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.