Goldman Cuts Rates On Its Savings Account For The Second Time, With Fed Now Sure To Follow

Back on July 1, almost a month before the Fed, Goldman first indicated what is coming when it cut the the interest rate on its popular Marcus savings account from 2.25% to 2.15%. 30 days later, Fed Chair Jerome Powell followed.

Now, less than three weeks before the September FOMC meeting, Goldman has cut rates again - hardly just a "mid-cycle adjustment" - and telegraphing that now only is a second rate cut from the Fed now 100% assured, but more will follow.

While there is no one more certain sign that the Fed will do the same next month, it won't come as a surprise to the market which has long been pricing in 100% odds of at least one rate cut next month, and as of this morning, the odds of a 50bps cut are 15%, although at least according to Goldman's Marcus platform, those hoping for a double hit of easing will be disappointed.