Fed May Cut Interest Rate By 50 Basis Points In March

Fed May Cut Interest Rate By 50 Basis Points In March

Goldman Sachs Group Inc. economists noted that they now expect the Fed to cut interest rates by 50 basis points at this month's meeting and that the U.S. central bank appeared likely to take a step in coordination with other central banks. Goldman economists revised their interest rate expectations for the Fed for the second time in three days, predicting the Fed could take action at or before its March 17-18 meeting, amid heightened risks to the U.S. economy. Goldman had forecast an interest rate cut of 25 basis points at that meeting on Friday, but now they think the Fed may not wait for that meeting to go to monetary easing. "The Risk is downward, at least in timing terms," Goldman economists, headed by Jan Hatzius, said in a note prepared for their clients on Sunday, adding that "there is a good chance of a coordinated easing, particularly in the next few weeks, perhaps next week."