Goldman Sachs: Fed Hawks Soothed, Future Easing Hinges on Labor Market

BlockBeats News, December 11th, Goldman Sachs analyst Kay Haigh stated that the Federal Reserve has reached the endpoint of "insurance rate cuts." She believes: "The next responsibility lies in the labor market data needing to weaken further to prove that additional recent accommodative policy is justified."

"Voting members' 'hawkish dissents' and 'dovish dissents' in the 'dot plot' highlight the Fed's hawkish camp, while the re-inclusion in the statement of wording regarding the 'degree and timing' of future policy decisions is likely aimed at appeasing them. Although this leaves the possibility of future rate cuts, labor market weakness must reach a higher threshold."

(FXStreet)