PANews reported on December 15 that according to Jinshi, Goldman Sachs believes that the Fed will cut interest rates in December without any suspense, and then cut interest rates by 25 basis points in January and March of 2025; and then cut interest rates only in the June meeting and September meeting. However, there are still some variables, because more and more Fed officials have indicated that the FOMC may slow down the pace of interest rate cuts as soon as possible, so there is a risk of suspending interest rate cuts at the January meeting.

Traders now see a 97% chance of a 25 basis point rate cut at the Fed’s Dec. 17-18 meeting. But stronger November data raises the risk that the Fed will pause in early 2025. Powell’s post-meeting speech and updated economic forecasts will be crucial.