Goldman Sachs: The Federal Reserve's interest rate cut at its upcoming December meeting is a foregone conclusion

Analysts at Goldman Sachs' fixed income, foreign exchange and commodities (FICC) division believe that the Federal Reserve's rate cut at its upcoming December meeting is almost a foregone conclusion. Analysts point out that based on the weak trend in the labor market and the need for risk management, a rate cut at this time is the right policy choice, and the market has fully priced this expectation. Goldman Sachs analysts point out that given the sparse data calendar leading up to the meeting and the high consistency of market expectations, interest rate cuts have been "locked in". Given the trajectory of the labor market, the Fed's rate cut in December, followed by a reassessment in January (after actually observing three more non-farm payrolls reports), is a good risk management strategy.