Goldman Sachs CEO doubts 50 basis point cut is ‘on the cards’

Goldman Sachs CEO David Solomon anticipates one or two more rate cuts, depending on how “economic conditions play out.”

Goldman Sachs CEO David Solomon has shot down the notion that the US Federal Reserve will cut interest rates by 50 basis points in September, just days after Standard Chartered Bank made the aggressive forecast.

“Whether or not we have a 50 basis cut, I don’t think that’s probably on the cards,” Solomon said during an interview with CNBC on Wednesday. 

While CME FedWatch Tool data shows just 7.8% of market participants expect such a move at the Sept. 17 Fed meeting, Standard Chartered Bank recently raised its forecast to that level, citing August’s weaker-than-expected jobs report, according to a Reuters report on Monday.

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