The federal funds rate is currently in a target range between 5%-5.25% , the highest level in more than 22 years. He added that Goldman has "long seen a high threshold for cutting because Fed officials will want to minimize the risk that they could regret cutting if inflation stays too high." The fed funds futures market is assigning about an 80% probability for a first quarter-point rate cut in May 2024, according to CME Group calculations . The year-end implied funds rate is at 4.76%, which points to cuts of 150 basis points. In their latest projections released in June, Fed officials projected a rate of 4.6% by the end of 2024.

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Persons: Goldman Sachs, Goldman, David Mericle, Mericle Organizations: Federal Reserve, Fed, Federal, Market, PCE Locations: 2024Q2