As experts in investing, we at Extreme Investor Network are always on the lookout for the latest market trends and economic indicators that can help investors make informed decisions. Recently, Goldman Sachs made a noteworthy announcement that has caught the attention of many on Wall Street.
According to Goldman Sachs economists, the probability of a recession in the current economic climate is just 15%, which is considered the “unconditional long-term average.” This revelation comes after a strong nonfarm payrolls report in September, which showed a significant surge in job growth and a decrease in the unemployment rate.
The positive labor market data has led Goldman Sachs to nearly abandon the possibility of a contraction in the near future. This news is particularly crucial as the Federal Reserve considers its next steps in monetary policy. While there were previous expectations of a 50 basis point interest rate cut, the recent data has shifted market sentiment towards smaller 25 basis point moves in the coming meetings.
It is important for investors to pay attention to these developments as they can have a significant impact on market expectations and asset prices. While current market pricing suggests further easing in monetary policy, history shows that excessive rate cuts are typically associated with recessions, not ongoing economic expansions.
At Extreme Investor Network, we believe in providing our readers with valuable insights and analysis to help them navigate the ever-changing landscape of investing. Stay tuned for more updates and expert commentary on the latest market developments.