Goldman Sachs amended its expectations to reduce the federal reserve rate, believing that if the economic recession increases, the risks of more federal reserve policy are higher, with price cuts by 200 basic points next year.
Goldman Sachs is now expecting that the American Federal Reserve will start in a series of discounts in prices in June, which is the previously expected before. The Federal Reserve’s chances on this road will be part of a precautionary dilution cycle.
Goldman Sachs predicts stagnation and reduce rates
Goldman Sachs assumed that if the United States avoided stagnation, the Federal Reserve will reduce prices by 25 basis points three times in a row, up to the rate of federal funds to a limits of 3.5 % -3.75 %. However, Goldman Sachs expect that if the economy decreases in the recession, the Federal Reserve will resort to a more aggressive response to politics, which reduces prices by 200 basis points next year.
With all fluctuations in the market, the possibility of economic recession increased. As a result, the current Foundation’s current expectations indicate a total of 130 basis points of price discounts by 2025, an increase of 105 previous basis points.
Moreover, the CME Fedwatch tool He appears The possibility of the next target Fed rate of 400-425 is 45.7 %.
With showing that the Japanese and South Korean stock markets witnessed a sharp decrease in the opening – the Nikkei 225 index opened by 1.9 % on Monday, and the South Korean KOSPI index fell by 4.3 % – this possibility is in line with the market situation on a large scale. On the other hand, The cost of Global Crypto Market is $ 2.48 trillion, at $ 7.45 % during the last day.
Even as bleeding continues in the global market, US President Donald Trump believes that the sale of the market is sometimes unintended, and that the market sometimes needs to “take its medication.”
Also read: Bitcoin price is at risk: The decline indicates a test of $ 76,000
