VIEW: Goldman Sachs note that "since Friday ,...>

FED: VIEW: Goldman Sachs note that "since Friday , the news on the outlook has

remained negative, with significant further increases in infections outside of

China and an exceptionally weak China PMI release. Moreover, the statement by

Fed Chair Powell on Friday afternoon that the Federal Reserve is "closely

monitoring" developments and "will use [its] tools and act as needed to support

the economy" strongly hints at a rate cut at or even before the March 17-18 FOMC

meeting. Based on these developments, we are making a further adjustment to our

Fed call to project a 50bp rate cut by March 18 followed by another 50bp of

easing in Q2, for a total of 100bp. The clear signal in Chair Powell's statement

has led the bond market to price in more than 25bp of easing, and the FOMC will

not want the cut to come as a disappointment in the present situation."