Morgan Stanley (MS) and Goldman Sachs(GS) economists diverge on their Federal Reserve interest rate forecasts over the next two years.
Morgan Stanley expects deep cuts, projecting the Fed funds rate will fall to 2.375% by end of 2025. In contrast, Goldman Sachs sees rates remaining elevated with a small cut in Q4 2024, then dropping every quarter through mid-2026 to between 4.0-4.25% by end of 2025.
Yahoo Finance’s Seana Smith and Brad Smith analyze the competing projections, discussing factors like unemployment, equity markets, and the Fed’s inflation outlook.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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