Bloomberg Talks Goldman Sachs Chief Economist Jan Hatzius Talks Tariff Hikes
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Jan 14, 2025 
Jan Hatzius, Chief Global Economist at Goldman Sachs, shares insights on U.S. tariff hikes and their effects on inflation and economic growth. He analyzes the current inflation landscape and discusses the Federal Reserve's potential rate cut pauses. Hatzius also projects a 20% increase for the CSI 300 index amid challenging circumstances in China, and offers an optimistic perspective on India's shift to sustainable growth despite recent economic slowdown. Tune in for a deep dive into global economic trends!
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Rate Cut Predictions
- Goldman Sachs predicts two Fed rate cuts in 2025, despite a strong jobs report.
- They believe inflation is normalizing, nearing the Fed's 2% target, justifying the cuts.
Conditions for No Rate Cuts
- The Fed might not cut rates if inflation doesn't normalize as expected.
- However, current economic trends and labor market rebalancing suggest room for monetary policy normalization.
Impact of Gradual Tariff Hikes
- Gradual tariff hikes, while less severe initially, create prolonged uncertainty for businesses.
- Goldman Sachs anticipates tariffs on China and European auto imports, impacting inflation and growth.