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Goldman Sachs Joins Barclays in Bet Against Fed Rate Cuts This Year
US interest-rate strategists at Goldman Sachs Group Inc. joined those at Barclays Plc in advising customers the Federal Reserve will be less aggressive in cutting interest rates this year than markets are predicting. Swap contracts that reference Fed meeting dates are currently priced for a policy rate about 70 basis points lower than the current one by year-end. Goldman strategists led by Praveen Korapaty recommended paying the December rate, anticipating it will rise. When the US central bank has made a series of rate hikes followed by two decisions to make no change, the most common subsequent course over the next ... (full story)