Goldman Sachs Analysts Predict Limited Shift From Credit To Stocks Amid Fed Rate Cuts

According to Odaily, Goldman Sachs analysts have indicated in a report to clients that the anticipated rate-cutting cycle by the Federal Reserve will result in only a slight shift of household funds from credit to stocks. Last month, the Federal Reserve significantly reduced interest rates by 50 basis points, bringing them to a range of 4.75% to 5.00%, with further cuts expected by the end of the year. The analysts noted that a stable interest rate close to 4% suggests that investors will continue to find alternative investments more attractive than stocks, although to a lesser extent than in recent years.