Goldman Sachs: The Federal Reserve's turn signal is clear, and the door to rate cuts is gradually opening

The latest research report from Goldman Sachs pointed out that the Federal Reserve's willingness to cut interest rates has become clearer, and the recent trend of the US interest rate market has responded. This trend is mainly driven by four key factors. First, the Fed's policy stance is undergoing a subtle shift, and second, trade policy uncertainty has dropped significantly. Third, the labor market shows signs of a general slowdown. Finally, the market has begun to digest the potential impact of the leadership change of the Federal Reserve in advance. The report particularly emphasizes that the evolution of the geopolitical situation in the Middle East, the possible market overreaction triggered by the change of the Federal Reserve chairperson, and the risk of monetization of fiscal deficits are all likely to be key variables that upset the current market balance.