Goldman Sachs: Fed to cut rates in September and December

The US Federal Reserve (Fed) will cut rates by 25 basis points in September and December if the economic data from now and then disappoints, according to analysts at Goldman Sachs.

The investment bank also expects the Fed to end its quantitative tightening (balance sheet runoff) program in July.

The markets are already priced in for two rate cuts before the year-end. Further, the money markets have priced in a 100% probability of a 25 basis point rate cut in July.