Lindsay Rosner, head of multi-division investment at Goldman Sachs Asset Management, said: The Fed did what the market wanted. The market is happy with the Fed. The market is still ahead of the Fed and expects to continue cutting rates by 75 basis points this year (the Fed dot plot shows 50 basis points). With unemployment and PCE estimates very close to (current levels), the Fed could easily cut rates more (than the dot plot shows).
Lindsay Rosner, head of multi-division fixed income at Goldman Sachs Asset Management, said tonight's CPI data cleared the way for a 25 basis point cut in September, but given more data to come, the possibility of a 50 basis point cut by the Federal Reserve has not been ruled out.