Goldman and TD Stake Out Opposite Positions on Fed Cut Wager
- Clashing views on year-on-year rate path starting in September
- TD says the spread prices too few cuts, Goldman says too many
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A pair of conflicting trade recommendations from strategists at major banks highlights the discord over the outlook for Federal Reserve interest-rate cuts.
Short-term interest rate futures are priced for the Fed to cut rates by about 150 basis points from September 2023 to September 2024. Strategists at TD Securities say that’s not enough, while those at Goldman Sachs Group Inc. say it’s too much.