Goldman Sachs: Fed Unlikely to Cut Interest Rates Just Because of Weak "Soft Data"

BlockBeats News, May 5th, a U.S. consumer and business survey revealed an anxious economic sentiment, but underlying data has not yet shown a significant economic slowdown. Goldman Sachs economists wrote that the Federal Reserve is unlikely to ease policy based solely on "soft data," especially as in the recent past, soft data has erroneously signaled an impending recession, such as during the Fed's fight against inflation in 2022.

Goldman's team wrote that the Fed "wants to see evidence from the labor market and other hard data before cutting rates." This investment bank, like other Wall Street institutions, believes the Fed will keep interest rates unchanged in Wednesday's rate decision. (FXStreet)