Goldman Sachs adjusts Fed 2025 forecast, expects slower pace of rate cuts

Nick Timiraos from "The New Federal Reserve News Agency" recently wrote that investors have largely concluded that the Federal Reserve will make its first interest rate hike in three years next week, but the harder question is what will happen afterward. Since almost no one inside the Fed believes that a single 25 basis point rate hike is enough to bring down inflation, a decision to raise rates next week would reflect the judgment that rates were previously set at the wrong level, and a single hike cannot solve the problem. Since the 1990s, the Fed has only had one "one-time" rate hike.