Goldman Sachs Reaffirms September Rate Cut Forecast, Downplays Fed's 'Hawkish Surprise'
Portfolio Pulse from Piero Cingari
Goldman Sachs reaffirms its forecast for two interest rate cuts in 2024, starting in September, despite the Federal Reserve's hawkish surprise in its June meeting. The Fed acknowledged modest progress on inflation, which has dropped significantly. Market participants now see a high probability of rate cuts, pushing bond yields down and equity indices up. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has risen over 2% for the week.
June 13, 2024 | 4:26 pm
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The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has risen over 2% for the week, driven by increased market optimism towards rate cuts following the FOMC meeting.
The news highlights a significant increase in market optimism for rate cuts, which has positively impacted long-dated Treasury bonds. This has led to a notable rise in the price of TLT, making it a key beneficiary of the current market sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80