When Donald Trump was sworn in as the 47th president of the United States, Goldman Sachs Chief Economist Jan Hatzius said the U.S.economy was in the sweet spot of healthy growth and gradual disinflation.

The U.S. economy is in a “sweet spot” and the market is possibly too pessimistic on the pace of Federal Reserve interest rate cuts. That’s according to Jan Hatzius, chief economist at Goldman Sachs, who in a new note published Monday,

Out of the nearly 680 investors polled in early January by Goldman Sachs, more than half said they are anticipating the Fed funds to be 3.75% or higher at the end of this year, implying reductions of about 50 bps for 2025.

This year’s sharp decline in funding spread suggests that institutional investors’ positioning in equities is shifting as markets rethink the Federal Reserve’s interest-rate path, according to strategists at Goldman Sachs Group Inc.

Several large U.S. financial institutions, including the Federal Reserve, have withdrawn from the networks after years of growing political and legal pressure.

Goldman Sachs CEO David Solomon cautioned Tuesday that mounting U.S. government debt requires immediate attention, pointing to a recent surge in Treasury yields as a signal of market concerns over federal borrowing.

Tariffs are a wild-card for inflation this year, but it is too soon to say what any changes will mean for the Federal Reserve, said central-bank newcomer Beth Hammack. In an interview, the Cleveland F

The Wall Street bank now sees the euro falling below parity to 0.97 against the dollar in six months — a level last breached in 2022 after Russia’s invasion of Ukraine triggered an energy crisis in Europe and ignited fears of a slowdown. That compares with the previous forecast of 1.05.

Risk assets trade weak as investment banks pare back Fed rate cuts in the wake of Friday's hotter-than-expected U.S. jobs report.

Wall Street indexes rose as investors assessed President Trump's executive orders and awaited trade policy actions. Although tariffs on Canadian and Mexican goods were mentioned, concrete plans remain unclear.

Inflation data, retail sales, and the start of Q4 earnings season will be in focus this week. • Goldman Sachs is a buy with strong earnings on deck. • Citigroup is a sell amid weak profit and revenue outlook.

Goldman Sachs beat Wall Street estimates and earned its biggest quarterly profit in more than three years as its investment bankers brought in more deal fees, while its traders benefited from active markets.