Kashkari of the Federal Reserve suggests the possibility of zero rate cuts, but Goldman Sachs finds the idea "very surprising"
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Goldman Sachs Chief Economist Jan Hatzius believes that the Federal Reserve will implement three interest rate cuts, projecting close to 3% growth this year and a 15% probability of a recession within the next 12 months. Minneapolis Fed President Neel Kashkari mentioned the possibility of zero rate cuts if inflation continues to stay flat. Traders anticipate that the Federal Reserve will keep interest rates unchanged at the May policy meeting, with a 94% likelihood, but there is a 60% probability of a rate cut at the June gathering. Hatzius remains persistent in his belief that three interest rate cuts will be implemented, while the timing remains uncertain. Market participants are closely monitoring comments from Fed officials and economic data to gauge the trajectory of interest rate decisions for the rest of the year.
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