Goldman Sachs CFO: Fed's first 50 basis point rate cut is a clear sign of new direction

Denis Coleman, chief financial officer of Goldman Sachs, said the US Federal Reserve's recent decision to cut interest rates by 50 basis points, a significant move that, while raising doubts among some market analysts about inflation and recession risks, still sets the stage for a soft economic landing. "This first 50 basis point cut is a clear sign of a new direction," he said. "I hope it boosts confidence, lowers the cost of capital and may boost strategic activity as we approach the end of the year." The FOMC surprised some economists by voting to lower its key overnight lending rate to its target range of 4.75-5 per cent. (Jin Ten)