Goldman Sachs expects to cut US interest rates 4 times in 2024

Joshua Shifrin, the international head of trading strategy at Goldman Sachs, has stated that the bank anticipates the US Federal Reserve to cut interest rates four times in 2024. He also expects inflation in the United States to reach 2% during the year. Shifrin suggests that the first half of 2024 will differ from the past four years, characterized by volatile markets and a lack of clear trading trends.

Goldman Sachs believes that the Fed will begin reducing interest rates in March, totaling four cuts throughout the year. Shifrin predicts that inflation will reach the central bank’s target of 2%. He also expects central banks in Europe and the UK to follow the Fed’s lead. However, Shifrin suggests that the Bank of Japan will deviate from the trend and raise interest rates in April.

While risk assets are expected to see broad gains in 2024, Shifrin warns that the first half may present challenges as markets react to speculations about the timing and pace of Fed rate cuts. He advises investors to explore opportunities in emerging markets such as Turkey and recommends Chinese stocks as a contrarian buy, especially after the local index reached its lowest levels due to the pandemic.