Goldman Sachs: The Fed's hawkish camp has been appeased; future easing depends on the labor market

December 11, Goldman Sachs analyst Kay Haigh stated that the Federal Reserve has reached the end of “preemptive rate cuts.” She believes: “The next responsibility lies in the labor market data needing to weaken further to justify additional recent easing policies. The ‘hard opposition’ among voting members and the ‘soft opposition’ apparent in the ‘dot plot’ highlight the Fed’s hawkish camp, and the reintroduction of language regarding the ‘extent and timing’ of future policy decisions in the statement is likely to reassure them. While this leaves room for future rate cuts, the softening of the labor market must reach a higher threshold.” (Jin10)