Goldman Sachs says US economy needs interest rate cut

Goldman Sachs Chief Economist Jan Hatzius stated that the US economy needs some interest rate cuts to revive growth.

Speaking at a conference organized by the bank on Monday, Hatzius said the world’s largest economy is nearing a period of stagnant growth, adding that it is difficult to pinpoint when exactly that will occur.

He believes that economic growth will be relatively slow before beginning to recover in 2026, following expected rate cuts by the Federal Reserve.

Hatzius' remarks came after the monthly jobs report showed the US economy added only 22,000 jobs in August, well below expectations of 75,000.

He expects the Fed to cut interest rates three times, in September, October, and December, with the possibility of additional cuts in 2026.