Goldman Sachs: Federal Reserve unlikely to cut interest rates due to weak 'soft data'

According to a report by Golden Ten, surveys of American consumers and businesses have shown an anxious economic sentiment, but basic data has not yet shown a significant economic slowdown. Goldman Sachs economists wrote that the Federal Reserve is unlikely to relax policy solely based on "soft data," especially since in recent times, soft data has incorrectly predicted an impending recession, such as during the Fed's fight against inflation in 2022. Goldman Sachs' team wrote that the Federal Reserve also hopes to see evidence of labor market and other hard data before cutting interest rates. This investment bank, like other institutions on Wall Street, believes that the Federal Reserve will keep interest rates unchanged in Wednesday's interest rate decision.