Goldman Economists Pencil In First Fed Rate Cut for Q2 of 2024

Goldman Sachs predicts rate cuts in 2024, not due to economic slowdown but as a move towards policy normalization. They foresee 25 basis point cuts per quarter starting from June, aiming to adjust the Fed funds rate to a more normal level as inflation nears target. The prediction was influenced by recent inflation data showing a month-on-month increase below the Fed's 2% target. Goldman estimates the neutral rate for the US economy to stabilize between 3% and 3.25%, which is higher than the Fed's expectation but lower than current market pricing.

What inflation rate did last week's print show, and how does it relate to the Fed's target?

What is the range Goldman Sachs sees for the neutral rate for the US economy?