Goldman Sachs: expects three consecutive 25 bps rate cuts starting in September

Goldman Sachs in this week's report details the agenda for the annual Jackson Hole global central bank meeting, which is the most highly anticipated non-Powell speech, Fed Chairman Jerome Powell will deliver a keynote speech at 10:00 a.m. EST on August 23 (22:00 GMT on Friday), which will be broadcast live but not followed by a question-and-answer session. Goldman Sachs noted that the market may recycle the confidence in rate cuts and data-dependent signals, and expects Powell's message and off-camera interviews to be similar to what has been heard over the past few weeks, namely that the Fed is now close to cutting rates but the extent of easing will depend on upcoming data. Goldman Sachs economists expect the Fed to cut rates by 25 basis points in three consecutive sessions starting in September and believe the market is overpricing a 50 basis point cut at the next meeting after weaker-than-expected jobs data in July.