Goldman Sachs Expert Predicts September Rate Cut – What Robert Kaplan Says

Robert Kaplan, former Dallas Fed president and current Goldman Sachs vice chairman, has predicted a potential interest rate cut by the Federal Reserve in September. He cites weak employment data and slowing demand as reasons for this potential move. Kaplan notes that while the current unemployment rate appears strong, the labor market is actually weaker due to limited labor supply. He further states that a weakening economy, excess capacity in the goods market, and declining inflation driven by AI advancements also support this decision.