Goldman Sachs: Clear Signals from the Fed Indicate Rate Cuts Are on the Horizon

According to a report by Jinse Finance, Goldman Sachs' latest research indicates that the Federal Reserve's willingness to cut interest rates is becoming increasingly clear, and recent movements in the U.S. interest rate market have already reflected this trend. This development is primarily driven by four key factors. First, there is a subtle shift in the Fed's policy stance; second, uncertainty surrounding trade policy has significantly decreased. Third, the labor market is showing broad signs of slowing down. Lastly, the market has begun to price in the potential impact of changes in the Fed's leadership ahead of time. The report particularly highlights that evolving geopolitical dynamics in the Middle East, possible market overreactions to a change in the Fed chair, and the risk of fiscal deficit monetization are all uncertain factors that could become critical variables disrupting the current market equilibrium.