Goldman Sachs: Fed Expected to Keep Interest Rates Unchanged Next Month

Simon Dangoor, Head of Fixed Income Macro Strategy at Goldman Sachs Asset Management, stated that the Federal Reserve maintained a dovish tone at its meeting. Despite raising near-term inflation expectations, the Fed is still expected to cut rates twice this year. He said: The FOMC members are signaling that they continue to view the recent uptick in inflation as largely transitory, and their tolerance for a rising unemployment rate remains very low. We expect the Fed to hold steady at next month’s meeting, but believe that if the labor market weakens, a new round of easing could begin later this year. (Jin10)