The Federal Reserve is expected to announce Wednesday its first interest rate cut since 2020.
While layoffs remain low, hiring has virtually ground to a halt, especially in some white-collar professions, making the job search process unusually difficult for many.
That would entail a cut of at least 0.5% at some point by the time the Fed announces its interest rate in January.
The Fed believes Wednesday's anticipated cut, and ones likely coming over the next several months, should put a floor under further economic deterioration.
"Layoffs remain low, job openings remain high, GDP is growing at a healthy pace, and there have not been any major negative shocks," David Mericle, Goldman Sachs' chief U.S. economist, said in a note to clients.
Persons:
Jay Bryson, Wednesday's, David Mericle, Goldman Sachs
Organizations:
Federal, Bank of America, Fed, NBC News, Citi
Locations:
U.S, Wells Fargo