(Reuters) – Goldman Sachs economists on Sunday predicted the U.S. Federal Reserve will cut interest rates aggressively and perhaps before its next scheduled meeting in two weeks time, saying the head of the U.S. central bank sent a clear signal with his unscheduled statement on Friday.
As stock markets sank for a seventh straight day, Fed Chair Jerome Powell on Friday afternoon said the Fed is “closely monitoring” developments and “will use [its] tools and act as appropriate to support the economy.”
Goldman said that “strongly hints at a rate cut at or even before the March 17-18 FOMC (Federal Open Market Committee) meeting.” Goldman expects a cut of a half percentage point by March 18.
(Reporting By Dan Burns; Editing by Daniel Wallis)
