Goldman Sachs: Fed Leadership Change Unlikely to Bring Rapid Rate Cuts

Jin10 Data, April 27 – Goldman Sachs economist David Mericle stated in a report to clients that the path for Kevin Warsh to become the Federal Reserve Chair is becoming increasingly clear. However, leadership changes may not immediately alter the Fed's policy stance in the coming months. He noted: "When there are divisions within the Federal Open Market Committee, a new chair may not be able to push for rate cuts as effectively as Powell." Regardless of Warsh's influence, the new chair's enthusiasm for rate cuts may not be significantly higher than Powell's, especially given the high uncertainty surrounding the Middle East conflict. Nonetheless, Goldman Sachs still expects easing policies to be introduced before the end of the year, maintaining its previous forecast that the Fed will cut rates by 25 basis points in both September and December.