Expert Warns of Potential Delays in Fed Rate Cuts Amid Middle East Tensions

Goldman Sachs' Lindsay Rosner, head of multi-asset fixed income, has highlighted concerns over the U.S. labor market's weakness, which could prompt the Federal Reserve to delay interest rate cuts. According to Jin10, Rosner noted that ongoing Middle East conflicts, particularly developments in Iran, are overshadowing U.S. employment conditions and complicating the path to policy normalization. Despite these challenges, Rosner anticipates that the Fed will eventually proceed with the remaining two 'normalization rate cuts' to bring interest rates back to a neutral level. However, the timing remains uncertain due to the current geopolitical uncertainties.