Goldman Sachs: Fed hawks are appeased, future easing depends on labor market

Kay Haigh, analyst at Goldman Sachs, said the Fed had reached the end of a "precautionary rate cut". "The onus then is on labour market data to weaken further to justify additional near-term easing," she said. "The hard dissent from the voting committee and the soft dissent in the'dot plot 'highlighted the hawkish camp at the Fed, and the reintroduction of language on the'extent and timing' of future policy decisions was probably intended to appease them. While this leaves open the possibility of future rate cuts, labour market weakness must reach a high threshold."