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

Recently, economists at Goldman Sachs bank predicted that the US Federal Reserve (Fed) could start lowering interest rates next March and make 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 have a "soft landing", with growth slowing slightly and inflation continuing to decline 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 leaving open the possibility of further rate hikes if inflation picks up again, Fed policymakers predict three rate cuts this year.

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

Goldman Sachs predicts the Fed will cut interest rates only five times this year, lower than the market's forecast, and the likelihood of a 0.5 percentage point rate cut is very low, the expert said.

The Fed's current interest rate is 5.25-5.5%. The five 0.25 percentage point rate cuts as predicted above would bring the interest rate 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