Goldman Sachs: The Federal Reserve’s hawkish stance has been addressed; future rate cuts hinge on labor market conditions

Kay Haigh from Goldman Sachs has reported that the Fed has completed its phase of precautionary rate cuts. Future cuts will depend on significant labor market deterioration to justify further adjustments.

The revision in the Fed’s language reflects a response to its hawkish camp. While the Fed remains open to idea of rate cuts, a notable decline in the labor market is needed.