Goldman Sachs: Expects the Fed to cut rates by 25 basis points in September, with five-year U.S. Treasuries being the best trade choice before the rate cut.

CoinVoice has recently learned that Goldman Sachs' Chief Strategist for Global Banking and Markets, Schifflin, stated that in the context of a potential rate cut by the Fed, the five-year U.S. Treasury bond is currently the most attractive trading option. He pointed out that the yield on five-year Treasury bonds has investment value in the range of 3%-4%, while also providing protection during rising market risks. Currently, the yield on five-year U.S. Treasury bonds is 3.85%, significantly down from 4.38% at the beginning of the year.

A Reuters poll shows that 61% of economists expect the Fed to cut the benchmark interest rate by 25 basis points to the range of 4%-4.25% at the September meeting. Goldman Sachs predicts that, considering the slowdown in real GDP growth and rising unemployment rate, the Fed may start a rate-cutting cycle in the fourth quarter of 2025 and continue to implement easing policies in 2026, ultimately adjusting the policy rate to a level of 3%-3.25%. (Jinshi)